The fact that she pulled out in front of the guy, who according to witness statements was riding safely & within the speed limits is surely the key point when it comes to the offence, how this doesn't constitute at least careless driving is beyond me.
To be honest, I don't think the arguement about if she was legally on the phone ie. not holding it, or illegally by having it in her hand would make much difference to the outcome in this instance, the fact was she wasn't paying proper attention to the road at least partly because she was also simultaneously involved in a conversation with her girlfriend. There is plenty of evidence out there that it's the act of being in conversation to someone over the phone that has the main detrimental impact on driving , not the fact that they are holding it.
But as Stevierst notes, we should bear in mind that we are only getting the Daily Mail's routine sensationalist take on the story.