UK mobile phone provider O2 has announced an up-coming price increase. It’ll affect their Pay Monthly Airtime Tariffs. They have announced a tariff increase of 2.7% from March 1st 2014, which they say is in line with with the current Retail Price Index (RPI) rate of inflation announced on 14 January.
Also announced are changes to other charges, such as calls and texts when you go over your monthly allowance. Prices for international calls and multi media messages are altering too.
Now I know your all thinking… “According to Ofcom I can get out of my contract now”, however O2 have responded with the following ..
Customers who signed up pre-23rd January 2014
Ofcom’s guidance only applies to contracts made from the 23rd January onwards. For customers who joined or upgraded before this date, our terms and conditions at the time you signed up stated that we are entitled to increase your monthly subscription charge by no more than RPI and no more often than every 12 months and are compliant with the body of general consumer protection law. Our advertising has also said ‘tariff prices may go up’ since January 2013.
Customers who joined or upgraded on or after 23 January 2014
Our current terms and conditions explicitly state that monthly subscription charges will increase (or decrease) every year in line with RPI. These are the prices customers are signing up to. Ofcom has confirmed that communications providers’ terms which explicitly provide for a customer’s monthly subscription to change each year in line with a specific percentage or index (like RPI) will not contravene its “fixed means fixed” guidance, provided such terms and prices are made clear to customers before they sign up.
Are you a O2 customer.? What’s your thoughts.?