Warning to 15 million O2 mobile customers after major change | UK | News
More than 15 million O2 customers could see their phone bills rise by 40% more than expected due to a new mid-contract policy change. The phone network emailed users on Wednesday to tell them it would increase the price of their contracts by £2.50 a month from next April, despite previously promising monthly prices would increase by just £1.80.
UK media regulator Ofcom criticized O2 for not being transparent about the price increase, and a spokesperson shared that they had written to the company “reminding them of their obligation to treat customers fairly”.
“We encourage all our customers who want to avoid these price increases to exercise their right to exit without penalty and sign a new agreement,” they said in a statement to the BBC. The change means their phone bill will rise by £30 a year from the £21.60 currently written into their contract.
Consumer expert Martin Lewis said on his eponymous podcast that he was “up in arms” over the change, which he claimed was “making a mockery of Ofcom”.
“Prices for O2 customers are rising – but that probably means the door is open for us all to see prices [rise] “It’s more than what we were told when we signed up,” he added.
Ofcom introduced new rules in January to prevent phone companies from increasing prices mid-contract without warning. But O2 insisted it had not breached regulations, which it said “don’t prevent companies from increasing annual price changes – for example, investing in improving networks”.
Ernest Doku from price comparison site Uswitch said: Daily Mail: “This move puts O2’s mid-contract price increase at the top end of mobile providers’ increase scale to date.
“With different networks’ varying approaches to price increases, it’s never been more important to compare the deals available to you to ensure you’re getting the best deal [one]. “As the increase applies to new and existing users, O2 customers do not have to endure this increase and can opt out of their contracts without penalty.”
An O2 spokesperson said: “With demand for mobile data at an all-time high, we are introducing a 70p per month increase to annual price increases for O2 customers, effective each April. “The annual increase of £2.50 per month (around 8p per day) continues to represent excellent value for services customers are using more than ever.
“We have once again frozen prices on device reimbursement schemes and are investing £700 million in our mobile network this year to ensure we meet growing demand and provide our customers with the fast and reliable connection they rely on. Customers on our social tariffs remain exempt from any price changes as part of our efforts to provide support to those who need it most.”
