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O2 bumps up mobile costs by 3.2%

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 11 December 2012  |  Comments 4 comments

Don't be fooled into thinking that signing up to a fixed contract means your costs can't go up - O2 is raising its mobile line rental by 3.2% from February.

O2 bumps up mobile costs by 3.2%

O2 has become the latest mobile network to increase prices, even for those customers on a ‘fixed’ price tariff.

As we wrote earlier this year, many mobile networks have been using small print in contracts to bump up their prices, even for customers on a supposedly fixed contract.

The small print covers “inflation-linked price rises” and even if you don’t like it, you will not be able to leave your contract as a result of the increase.

Consumer group Which? has launched a Fixed Means Fixed campaign to try to end these price rises. Read Mobile networks using small print to raise prices on fixed tariffs for more.

The O2 increase

O2 will be raising its prices by the Retail Prices Index measure of inflation for October (the most recent month that we have inflation figures for) of 3.2%. The price rise will kick in from 28th February 2013.

The price increase only covers the line rental for pay monthly tariffs, so the costs of actual calls and text messages are unaffected. O2 claims that for more than half of its customers the increase will mean no more than an extra 58p per month.

Why O2 is raising its prices

In a statement, O2 blamed rising “external costs” and highlighted that, while its competitors had been raising their prices, it had held off as long as possible.

It concluded: “Price increases are never welcome and this isn’t a decision we’ve taken lightly. However, it will help enable us continue to invest in the services that matter to our customers while still offering great value for money.”

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Comments (4)

  • Ginnymay
    Love rating 39
    Ginnymay said

    Hmm. My NHS pension is index-linked, but they sneakily shifted it to the CPI, not the RPI a couple of years ago. Funny the firms don't peg to the lower index, isn't it?

    Report on 11 December 2012  |  Love thisLove  0 loves
  • tuttogallo
    Love rating 99
    tuttogallo said

    Apparently the small print clause allowing this typically allows an increase up to RPI "which is not to the detriment of the customer".

    Since (apart from the CEOs, fatcats and people on benefits) no-one's income is going up, so these increases ARE to the detritment of the customer.

    Therefore these rises are illegal. Which? is taking a complaint to the regulator.

    Report on 15 December 2012  |  Love thisLove  0 loves

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