O2 contract customers face 3.2% price hike from February

[darrengf]

http://www.mobiletoday.co.uk/News/23540/O2_contract_customers_face_3.2_price_hike_from_February.aspx

Never welcomed News I'm affraid.

Just a shame it's had to happen.

So no network Is amune from the price increase now 😢

[perksie]

I guess it had to come at some stage.

[atticman]

I thought I'd signed a 24 month fixed-price contract. On what basis can O2 increase what I pay and does that mean the contract is now void?

[sheepdog]

Another reason to go sim-only now to reduce costs. Bizarrely, they've announced it before the  big Christmas rush so in one respect, people have to think twice before committing to that free phone over 2 years. On the other hand, I think I'll set up a macro to say "it was announced in December so tough" when the forum gets hit with it in March.

I do hope the shops are going to be pointing this out to potential customers (along with something thrown in to sweeten the inevitable).

On the other hand, PAYG is looking a better option now at the under £15 a month bracket.

[sheepdog]

---

@atticman wrote:

I thought I'd signed a 24 month fixed-price contract. On what basis can O2 increase what I pay and does that mean the contract is now void?

---

No. Within the T&C's there is a clause allowing all operators to raise prices in line with inflation. If it is above that then you can enact a clause saying its detrimental. You'll also find within the T&C's another get-out clause saying if taxes like VAT rise or they introduce a phone tax then you will be paying more. 

All in the T&C's of all agreements.

[MI5]

Unlikely that my salary will rise in line with inflation to allow me to pay all these "in line with inflation" price rises consumers are getting hit with.... Gas, elec, phone, food etc all going up. It's only the consumers that suffer as the "companies" pass on their costs. Who can we pass our costs on to?

[sheepdog]

I'd like to reduce my tax paid to the government inline with inflation 

[darrengf]

Mmmm sheepdog I agree with that

[perksie]

Don't we all?

[atticman]

Mmm - the summary agreement I signed says "Some increases would give you the right to end your Agreement without penalty. Details are in para 5 of the Agreement". http://www.o2.co.uk/termsandconditions/mobile/our-latest-pay-monthly-mobile-agreement Para 5 says:

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).

So, look like we're stuffed!