Benefits of price inflation on contract? - Page 3

Liquid · ‎16-12-2012

The way I see it is that everyone giving that tiny bit extra that the majority of us won't even notice will help to improve the service.

Imagine 22million customers with a price hike of up to £2.00 will increase the amount available for O2 to spend on spreading their coverage. For all you who have terrible coverage imagine if instead on spending £1million per day they spent 2 or even 3 the network would get a huge boost from the extra spending.

They'd have the money to hire extra CS reps which would cut down on the waiting times.

Their tax will increase resulting in more money going back to the country for schools, emergency services, general maintenance and so on.

It's not all bad.

Nothing sucks more than that moment during an argument when you realize you’re wrong. So Ive been told

Anonymous · ‎19-12-2012

I would like to add that it will also go to keeping 12000 uk people employed which will only help to keep taxes paid to a government that needs the money and our own taxes lower.

Liquid · ‎19-12-2012

How did I miss that:)

Great one steersy!

Nothing sucks more than that moment during an argument when you realize you’re wrong. So Ive been told

Anonymous · ‎21-12-2012

I think we are all missing something here, O2 have said that the prices are being increased due to inflation. Going by that statement they should have no extra money to spend as their costs of running have also went up by that amount due to inflation. If their prices have somehow not gone up by reducing costs somewhere else down the line then their statement to us about the price increase is misleading.

Does anyone know where they pluck this 3.2% price increase from? I've did a bit of research on inflation and RPI and the latest figures I can find on these two is inflation of 2.7% and RPI of 3.0%. Is 3.2% predicted figures for Feb 2012 and beyond?

Liquid · ‎21-12-2012

3.2% was apparently novembers point. (Haven't looked myself).

You are correct prices have gone up, so O2 are probably not spending as much as they have done. The extra money I'm referring to is the shortfall they are currently experiencing between inflation last year and this year.

Nothing sucks more than that moment during an argument when you realize you’re wrong. So Ive been told

adamtemp64 · ‎22-12-2012

@Anonymous wrote:

Does anyone know where they pluck this 3.2% price increase from? I've did a bit of research on inflation and RPI and the latest figures I can find on these two is inflation of 2.7% and RPI of 3.0%. Is 3.2% predicted figures for Feb 2012 and beyond?

http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/index.html is where o2 got the figure the latest published figures they used was the november data release and they linked to it on this page http://www.o2.co.uk/desktop/prices

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