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O2 changes contract terms, locks customers into higher prices

O2 announces a 2.7 per cent price increase and locks customers into their contracts.

O2 is increasing its prices by 2.7 per cent from March this year, potentially locking 8 million existing pay-monthly customers into the new inflated contracts. From last Thursday, Ofcom ruled that customers who want to leave their fixed-term contract if their tariff is suddenly increased have the choice to do so without penalty. However, the new rules only cover contracts signed from that day onwards, and hours after the new rules were revealed, O2 announced its pricing increase – meaning existing customers may be stuck paying the inflated fees until the end of their terms.

O2 Rewards...loyal customers?

Consumer group Which? made a formal complaint and 60,000 people backed its campaign for fixed contracts without loopholes. However, O2 has stated on its website: “An increase of this kind does not entitle you to end your agreement mid-contract. As set out above, our terms for customers signing up both pre- and post- 23 January allow us to apply a price increase to reflect RPI.”

A spokesperson for O2 also added: “Price increases are never welcome but inflation has an impact on our costs. For more of our customers it will mean an additional charge of less than 60p on their monthly subscription. We continue to invest in our network and the services that matter to our customers while still offering great value for money.”

O2 reached out to us to clarify that customers will be clearly told if the future price will change each year and given at least a month’s notice before each change. The customer will then have a choice as to whether to agree to this or not before signing the contract.What’s your opinion on the price increase? Let us know by posting in the comments below. 


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