Operators 'earning £90m a year from price rises on fixed contracts'

[Anonymous]

What do you thing guy and gals?

So far O2 have kept out of this arena

http://www.mobiletoday.co.uk/News/21843/operators_earning_90m_year_price_fixed_contract_increases.as...

[perksie]

One reason not to take out a contract for longer than twelve months.

I think it's cheaper and more flexible to then go to a thirty day rolling contract on the lowest possible tariff and use the money saved to buy a new phone when needed for cash.

Tying into a two year deal is out of the question from my point of view, as it leaves you vulnerable to either a price inrease or a failing handset which may not be covered by the guarantee.

[jonsie]

Too true perksie but unfortunately being tied in to a two year contract is the only way some people can afford to get the latest phones.

[adamtemp64]

But o2 have never put our prices up mid contract except for vat in all the years we have been business customers.

[MI5]

I would have thought that changing the terms and conditions of the contract would render it void and require a resigning of new contracts? Surely this would allow the consumer to opt out if the new contract was significantly different. I don't see why the computer systems can't handle an increase in price for new contracts whilst maintaining current contract pricing, that way everyone would pay the increase when their contracts came up for renewal if they chose to.

[perksie]

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@MI5 wrote:
I would have thought that changing the terms and conditions of the contract would render it void and require a resigning of new contracts? Surely this would allow the consumer to opt out if the new contract was significantly different.

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They've covered that:

"5. Charges for our Services
5.1 Detailed charging information can be found on our Website and in our Tariff Terms.

5.2 We may increase or decrease our Charges from time to time. If we increase our Charges (apart from for Additional Services), we’ll let you know at least 30 days before the Charges are due to go up and you’ll have the rights explained in paragraphs 5.3 and 5.4. We won’t increase your Monthly Subscription Charges more than once in any 12 month period.

5.3 You can end this Agreement without having to pay the Monthly Subscription Charges up to the end of any Minimum Period you have left, if:
(a) we increase your Monthly Subscription Charges by more than the Retail Price Index (RPI) annual inflation rate at the date we notify you of the applicable price increase; or
(b) we increase any of our Charges (apart from for Additional Services) in such a way that would have increased your total bill for the immediately previous month by more than 10% (if the increase(s) had applied for the whole of that month).

5.4 If you want to end the Agreement because of one of the circumstances in paragraph 5.3 you must give us Notice that you want to within 30 days of when we tell you about the relevant price increase(s). If you don’t give us Notice within 30 days, you accept the new Charges and the Agreement will continue with the new Charges."

[MI5]

Sounds fair to me

[perksie]

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@MI5 wrote:
Sounds fair to me

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I agree and as Adam pointed out, they've never done it yet.