O2 to raise contract line rental by 3.2pc

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Operator follows Orange and Three by increasing prices in line with inflation, adding rise has also been implemented due to bigger external costs

O2 is to raise the line rental of its contract tariffs by 3.2 per cent from February 28, 2013, due to a rise in external costs at the operator.

The rise, which is in line with current inflation, will mean an increase of up to 58p per month for O2’s 11.9 million consumer and business contract customers.

There will be no changes made to charges for calls, texts and data within customer allowances. Prepay, home broadband, mobile broadband, home phone, O2 Lease and large enterprise customers on bespoke contracts will be unaffected.

The network is emailing and writing to all its contract customers today to inform them of the changes. It has also set up a website (www.o2.co.uk/prices) to explain the changes to customers and enables them to calculate the price of their monthly tariff following the price increase.

O2 said the price increase will enable it invest in services such as Priority Moments, O2 Gurus, O2 Wi-Fi and O2 Recycle.

The line rental price increase follows moves made by Orange and Three this year. In January, Orange increased prices by 4.34 per cent while in July Three increased prices by 3.6 per cent.

A spokesman added: “Price increases are never welcome and this isn’t a decision we’ve taken lightly. At a time when our competitors have been raising the prices of their tariffs, we’ve resisted. But as external costs continue to rise, we can’t keep our pay monthly prices at the current level. For over half of our pay monthly customers this will mean an increase on their bill of up to 58 pence per month”

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