O2 increases prices for existing customers by 2.7pc

Written by: Paul Withers
O2 increases prices for existing customers by 2.7pc

Bill charges to be made from March 1, following Ofcom’s ruling that anyone entering into a new contract from January 23 can leave provider mid-contract if bills are increased 

O2 is increasing contract prices for its existing customers by 2.7 per cent, avoiding an Ofcom ruling made last week for new customers to be able to leave their provider mid-contract if prices rise.

The mobile operator said its ruling, which is in line with the Retail Price Index (RPI) from this month, takes effect from a consumer’s March bill date and applies to customers on O2 prior to January 23.

O2 said this is in line with current terms and conditions where it states that prices may increase or decrease from time to time and that it won’t put the monthly subscription up more than once in any 12 months.

O2 last made changes to tariffs mid-contract last February, when it increased prices by 3.2 per cent in line with RPI.

New and upgrading customers from the above date are subject to the new Ofcom guidance, which state that monthly subscription charges will be subject to an increase during March and from 2015, and each year thereafter, during April, they will be subject to further increases or decreases by the RPI rate.

O2 added provided price terms are sufficiently transparent, then the application of an RPI change on an annual basis does not give customers the right to terminate their contract.

The operator is also increasing the prices of calls and text messages that are made once a customer has exceeded their inclusive allowance. Voice calls will increase from 35p a minute to 40p a minute, texts from 12p to 15p and MMS from 35p to 40p. A one minute minimum charge now also applies to calls made outside of the inclusive bundle.

An O2 spokesperson said: “Price increases are never welcome but inflation has an impact on our costs. For most of our customers it will mean an additional charge of less than 60 pence on their monthly subscription.”

It comes hours after Ofcom ruled that customers can now leave their telephone or internet provider mid-contract if bills are increased. In contrast, the ruling only applies to new contracts entered into after January 23, as well as to small businesses of up to 10 employees.

Providers must now give 30 days notice that they are increasing prices, with customers able to cancel contracts during the agreed period without incurring a penalty.

 

25 Responses to “O2 increases prices for existing customers by 2.7pc”

  1. martin connellan says:

    Just joined 02 week ago, sim deal in shop £16 per month, very happy at time – was until bill dropped thru post that is, £21 ??? went back to shop who contacted the office stating something like it would not be 21 – just the first bill and then got another bill explaining 2.7% rise?
    strange start to this contract!
    will hope that by next month it will be sorted as I will cancel

  2. confused says:

    My daughter is goin to Australia on Friday fir a year but she has 8 months left on her contract with 02, when she contacted them to reduce her tariff & pay the 8 months off she was told she couldnt; is this the case as i thought that if u only had 8 months left u could reduce???

  3. J says:

    After reading through a lot of the comments, I find it odd a lot are saying that a contract is just that, a contract. Yes it is. AND people, including myself, agreed that O2 can put up the price mid-contract with appropriate notice. We may not have said verbally YES but either by physically signing or via distance selling and the distance act, we agreed that this can happen.

    Complain all you like but being sensible, we all agreed to a set price but with the clause that it can be raised if the company deems it necessary AND before I get attacked for this, I am not happy about this but I am being pragmatic about it.

  4. MR FLEECED says:

    Surely there must be some legal requirement for the so called ‘guru’s in the O2 shops to spell out key aspects of a contract, the right of O2 to increase tariffs in a 24 month contract, for example. You cannot expect the average punter to read through the microscopic crap that O2 call ‘terms and conditions’

  5. peter carr says:

    well I have been in a battle with o2 for the last 6 months over poor coverage it used to work in my home for the last 4 years no problem but both my phone and my wifes phone report a loss of signal for approx 30% of the time the phone is turned on . price increases !!!!! for a 2G service that doesn’t operate as it used to .when I need a new contract its GOODBYE TO O2 !!!!!

  6. davidkyle says:

    Oh no!! please don’t run your business properly o2! how dare i pay a few pence more for my service, i want to pay the same all the time and get free stuff every year untill you have no money left to operate at all!! idiots

    • Troll wiper says:

      erm Do you work for O2? (and if you do you might be out of a job looking at the amount of people leaving them) I have been with this O2 company for about 10 years now and I couldn’t believe getting a TEXT to tell me that my phone bill would increase and I couldn’t do anything about it, and no I wouldn’t like any company to go under because then didn’t update their tariff in time with inflation BUT when I signed my contact I don’t expect it to change do you think then would lower your contact if inflation was to got lower … I think not! and getting to receiving free stuff I really don’t want anything for free I just want my phone bill not to change until I renew my contract which I will NOT be doing….. so jog on David

  7. Andy says:

    Well done O2 my signal is getting my internet strength and speed is diminishing and now you are putting my FIXED contract cost up it we’ll soon be bye bye O2

  8. Nigel says:

    Two weeks ago I entered a 24month contract with O2 and have had a lovely text from them saying of an increase.

    I have only had the contract TWO WEEKS!!!!

    Well done 02, wish I had gone else where!!

    There will be a mass exit when they treat people this way.

    Lets hope they go bankrupt.

    • J says:

      That is a disgusting response. Regardless of how the business is run or how you perceive the running of that business, you are hoping thousands of people lose their job. Let’s hope you never go through that as your attitude stinks!

  9. Andrew says:

    I find it laughable at the amount of people who are saying they will move to another network because of these tiny increases. All the networks have increased prices (Orange have done it twice in just over a year) mid-way through a contract! In fact O2 were the last of the networks to increase their prices. O2 are investing £1.5million per day on upgrading the network and the cost if phones keep increasing so anybody with basic business acumen would expect overall prices to increase from time to time. What needs to be done is for the government to decrease VAT!! There’s your answer right there.

  10. Richard Bolton says:

    I have just finished speaking to an 02 member of staff on their website chat.

    They are calling me back with the next 72 hours.

    Apparently 02 are not doing it for financial gain. Of course they are! Why else do they increase everything? The general public are being taken for a ride.

    A contract is an agreement between TWO parties. They keep saying “It is stated in our terms and conditions” but only those in a Law related profession can understand the confusing wording.

    02 – You will be the losers in this. Millions will be going elsewhere as soon as they can, mark my words. I have been an 02 customer for 12 years (Since I had me Nokia 3210)

    Bye bye fraudsters!

  11. mohamed says:

    I had 6 months left on my last o2 contract so i payed the remainder and took new 24month to lower my tarrif from £36 to £27. Silly me…what?? O2 increasing the tarrif again..that is a JOKE…O2 THIS is my last ever contract with you..time to move on.

  12. Tina says:

    24 month contract signed 29/12/2013 price increased 29/1/2014

    How is that not an unfair contract?

    The O2 webchat guy’s comment ‘It’s only pence’

    A contract is a contract- and this is not the way to honour it

    We will all be leaving O2 in due course I expect

  13. Len says:

    I find this price increase, just bang out of order.
    a contract is just what is says, an agreement between two parties, not a one sided right to do what they like .
    Ok apply new prices to new contracts, not existing ones….
    bye bye 02

  14. Pete says:

    I’m 5 months into a 24month contract and first time I have don’t business with O2…. Not the best of experiences here. However I know I cannot do anything about this now but when my contract finishes, I will vote with my feet. This so underhand that a contract isn’t a contract with these people. This is a shackle not a contract. Shame on you O2

    Pete S.

  15. billy halewood says:

    this is a sad day as we all know times are hard and we all have to scrimp and save by o2 doing this they will leave by there droves are you desprate that you have to hit your loyal customers as i am one my self as is most of my family wife ,daughter ,son im sorry to say we will be leaving due to your greed as a big company as you are so when our tariffs are up we are all gone

  16. Jimbob says:

    I received the price rise notification by text message today. A nice way to start the day. It’s sad to see another money grabbing corporate grinding down its customers like this. I too will be leaving O2 after 11 years. Good luck to them…

  17. Dave Brown says:

    Just moved to O2 three weeks ago and they’ve up’ed the price already.
    Not off to a good start.
    Now I wish I never bothered.
    My partner was also going to move to O2 in a month or so,
    But definitely will not be now.
    God omly knows what this phone will be costing me in two years time.

  18. Bella says:

    It is outrageous for O2 to apply these increases to customers on fixed term contracts!!! The next time my contract is up for renewal I will be going elsewhere.And I will make sure to tell all my friends and family members Not to ever take a contract with O2!!!

  19. Jan says:

    Hey O2! Guess who will be taking her business and her family’s business elsewhere as soon as my contract is up! The whole nation are dealing with RPI and I’d like to be able to go to my employer and tell them that I want the same percentage wage increase because of the retail price index but I can assure you it won’t happen. You have just taught a class on “how to lose customers”. Well done. I’m sure the other phone companies are rubbing their hands together at your greed and stupidity.

  20. Kaspa says:

    I took out my phone contract in October 2012, at the time it was £35.00. I have always understood that part of this cost was for the phone and the remainder was for the Tarrif. e.g Fixed contract of 24 months at £35.00 per mth £20.00 PM for the phone. £20.00 x 24 = £480.00 for the phone and £15.00 for the Airtime. Since I took out my contract I was hit with a 3.7% increase in Feb 13 and now this new 2.7% increase so my bill has gone from £36.00 to £38.15. Given that the first £20 was the price of the phone for which I was paying £480 I calculate that I will now pay £498 for my phone an increase of £18.00 on a phone that is decraesing in value. Surely there is some legislation out there against increasing a finance agreement which is effectively what is happening. I for one will not renew my contract with o2 and I hope that they will end up paying for their crass decisions.

  21. Peregrine says:

    It is outrageous for O2 to apply these increases to customers on fixed term contracts. I have no way of choosing to not pay for a service at increased rates in the future. You may have me on a string right now O2, but you can bet I will be leaving you once my contract ends!

  22. geryk says:

    O2′s eight million pay-monthly customers will be hit by a price rise of 2.7% from March – and if you’re one of them, there’s little you can do to leave your contract penalty-free. The price of certain out of bundle call costs and texts, as well as international call prices are also increasing.

  23. Badbob says:

    I have been with O2 since they were BTCellnet. I used to feel like I really was important to them. However since being taken by Telephonica the customer service has become awful. Now when you ring them it feels like you have been put through to Chanel 4′s Phoneshop. Most of the information you are given is incorrect, I am unable to decide whether this is deliberate or the staff are misinformed.

    So the next time my contract is up for renewal I will be going elsewhere.

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