MOBILE operators have panned parts of a government proposal that would limit the length of mobile phone and broadband contracts and potentially lower the fees for terminating a plan early.

SingTel called the recommendations, which come from the Infocomm Development Authority (IDA), 'unwarranted'.

'The guidelines will restrict the service providers' (flexibility) and likely have the effect of dampening competition between service providers,' the company said.

The IDA last month proposed several changes designed to encourage competition and free customers from long contracts.

It recommended capping mobile and broadband contracts at two years, down from the current maximum of three years.

Officials said consumers had complained the contracts were 'unduly long', denying them the freedom to switch to cheaper or different plans.

The IDA also recommended doing away with the stiff penalties for ending a contract early. The fees can reach up to $800 for some plans.

The IDA recommended that the penalty be graduated. For example, a subscriber with one month left on his contract would pay less than a person with a year left.

The proposals drew support from many mobile phone users in Singapore, who said the old contracts were too restrictive.

Read the full report in Thursday's edition of The Straits Times.