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O2 and EE Price-Hike Incoming and There’s NO ESCAPE

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O2 and EE Price-Hike Incoming and There’s NO ESCAPE

O2 and EE confirm this month’s price hikes will affect EVERYBODY –– including those already in contract


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When you sign up for a mobile contract you may think the price you agree to will be the price you pay throughout the life on the contract. But that’s not the case as many UK customers are about to find out. Mobile operators can raise the price of your tariff at any time if those rises are tied to something called the Retail Price Index (RPI). The RPI is a measure of inflation published monthly by the Office for National Statistics. Simply put it measures the cost and value of things relative to how the economy is doing. As inflation rises, so usually do the prices of goods.

Due to the latest RPI two mobile operators have announced price hikes for all their customers, coming into effect in March and April. Those mobile operators are O2 and EE and they’ll be rising EVERYONE’S tariffs by 1.1% this month and next. Keep in mind, this isn’t an increased cost only if you renew your contract. This 1.1% price rise will affect all current customers regardless of when they started their contracts.

“This week’s price rises from O2 and EE will be frustrating for their existing, loyal customers,” says Ernest Doku, telecoms expert at uSwitch.com. “Ofcom has taken big steps to protect mobile users from mid-contract price hikes, but opportunities clearly still exist as bill payers continue to be subject to annual increases. Mobile networks do now make it clear when customers sign up that they will increase their prices in line with RPI once a year. In doing so, it is very hard for customers to leave their contract without penalty when this inevitably happens.”

The news may have felt a bit less of a punch in the gut if O2 and EE hadn’t already increased their prices by 2.7% last year. Incidentally T-Mobile also increased their prices by 2.7% last year and Virgin Mobile increased its prices by 2.5% last year, but neither of those companies have announced RPI price hikes this year like O2 and EE have–at least not yet.

A bit annoyed yet? Me too. But following a backlash about mid-contract price hikes in 2013, Ofcom ruled that mobile providers must give customers 30 days notice of any price increases or reduction in minutes or data. This notice allows customers enough time to act–and possibly get out of their contract.

“There are a few things you can do to leave your contract within the minimum term if your operator raises prices,” says Doku. “Take a look at out-of-bundle costs to see how much they’ve risen. If you regularly dial international numbers, for example, and these prices have increased substantially, you may be able to prove that it constitutes a ‘material detriment’ to your experience and make a good case for leaving early.”

He also notes that if you are outside your minimum contract term, then you are entirely within your rights to vote with your feet, and leave without incurring any additional charges and says “Some providers, such as Three and Tesco Mobile, do offer a ‘price promise’ to customers, pledging to charge the same amount for the entire minimum duration of their contract, and offering protection from any mid-contract price hikes.”

Tesco Mobile was the UK’s first network to introduce a Tariff Promise back in 2012. In a statement today Simon Groves, Chief Marketing Officer of Tesco Mobile, said “Continuing the Tariff Promise into its third year demonstrates our on-going commitment to providing a fair and clear service to our customers. We believe there is no reason for these Hidden Hikes to increase prices agreed with customers, even at the standard rate of inflation. We want to reassure our customers of this simple fact: Tesco Mobile guarantees not to increase prices mid-contract”.

Does a 1.1% price hike irk you enough to switch providers? Let us know in the comments.


14:31, 4 Mar 2015

O2 and EE make sure this month's worth hikes will have an effect on EVERYBODY –– together with the ones already in agreement

News

When you join a cellular agreement you might imagine the fee you comply with would be the worth you pay all the way through the lifestyles at the agreement. But that’s now not the case as many UK consumers are approximately to determine. Mobile operators can carry the cost of your tariff at any time if the ones rises are tied to one thing referred to as the Retail Price Index (RPI). The RPI is a degree of inflation revealed per month by way of the Office for National Statistics. Simply placed it measures the price and worth of items relative to how the financial system is doing. As inflation rises, so frequently do the costs of products.

Due to the recent RPI cellular operators have introduced worth hikes for all their consumers, entering impact in March and April. Those cellular operators are O2 and EE and they’ll be emerging EVERYONE’I price lists via 1.1% this month and subsequent. Keep in thoughts, this isn’t an higher value provided that you renew your agreement. This 1.1% worth upward push will have an effect on all present consumers without reference to once they began their contracts.

“This week's worth rises from O2 and EE will probably be irritating for his or her present, unswerving consumers,” says Ernest Doku, telecoms skilled at uSwitch.com. "Ofcom has taken large steps to offer protection to cellular customers from mid-agreement worth hikes, however possibilities obviously nonetheless exist as invoice payers remain topic to annual will increase. Mobile networks do now make it transparent while consumers enroll that they are going to building up their costs in keeping with RPI every year. In doing so, it is rather exhausting for patrons to go away their agreement with out penalty while this necessarily occurs.”

The information will have felt just a little much less of a punch within the intestine if O2 and EE hadn’t already greater their costs through 2.7% remaining yr. Incidentally T-Mobile additionally greater their costs via 2.7% ultimate yr and Virgin Mobile higher its costs by way of 2.5% final yr, however neither of the ones firms have introduced RPI worth hikes this yr like O2 and EE have--no less than now not but.

O bit frustrated but? Me too. But following a backlash approximately mid-agreement worth hikes in 2013, Ofcom dominated that cellular suppliers will have to provide consumers 30 days realize of any worth will increase or relief in mins or knowledge. This realize lets in consumers sufficient time to behave--and most likely get out in their agreement.

"There are some things you'll be able to do to go away your agreement inside the minimal time period in case your operator increases costs,” says Doku. “Take a take a look at out-of-package prices to peer how so much they’ve risen. If you steadily dial global numbers, as an example, and those costs have higher significantly, you could possibly turn out that it constitutes a ‘subject matter detriment’ for your revel in and make a just right case for leaving early.”

He additionally notes that in case you are out of doors your minimal agreement time period, then you're solely inside of your rights to vote together with your ft, and depart with out incurring any further fees and says “Some suppliers, corresponding to Three and Tesco Mobile, do be offering a ‘worth promise’ to consumers, pledging to price the same quantity for all of the minimal period in their agreement, and providing coverage from any mid-agreement worth hikes.”

Tesco Mobile used to be the United Kingdom’s first network to introduce a Tariff Promise again in 2012. In a observation nowadays Simon Groves, Chief Marketing Officer of Tesco Mobile, stated “Continuing the Tariff Promise into its 3rd yr demonstrates our on-going dedication to offering an even and transparent carrier to our consumers. We consider there is not any explanation why for those Hidden Hikes to extend costs agreed with consumers, even at the usual price of inflation. We need to reassure our consumers of this easy reality: Tesco Mobile promises to not building up costs mid-agreement”.

Does a 1.1% worth hike irk you adequate to modify suppliers? Let us understand within the feedback.

14:31, 4 Mar 2015
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