O2 mid term rise v ofcom ruling Facts

[adamtemp64]

Loads of threads over this but the salient points are

1 Ofcom rules apply from 23rd Jan 2014 and allow for price rises http://consumers.ofcom.org.uk/2014/01/checklist-when-taking-out-a-new-phone-or-broadband-contract/ This line  beyond what you agreed to at the point of sale

2 O2 issued new T&C that apply from 23rd Jan 2014 that meet the guidelines above. http://www.o2.co.uk/termsandconditions/mobile/our-latest-pay-monthly-mobile-agreement

3 On contracts prior to the giudline implementation date 23rd Jan 2014 the relevant T&C have it covered. the links below should confirm it. I.e. o2 can put it up by RPI.

aug 2013 - Jan 22 2014

(may2013-august2013)

(april2011-april2013)

Complainimg to o2 or ofcom will not exclude you from the rpi rises and in all the T&C o2 have the get out clause if above stated rpi.

These are the facts and however harsh you feel it only Ofcom are to blame and o2 have used the guidelines as implimented

[perksie]

Well done to them if it is.:smileyhappy:

Very unlike O2 and their legal team to get it wrong.

[Anonymous]

Given AshMason's very interesting piece above regarding RPI & RPIJ - are we expecting to see a partial climbdown by o2?

Or is this part of a general price increase happening across the industry with o2 being the first to take a kicking?

Mmmmm I wonder

[adamtemp64]

Well the rpi is still published and may not be a national statistic but ofcom refer to rpi in the guideline and o2 do in the t&c o2 do not claim it to be a national statistic.

If o2 change anything it maybe to reflect the new standard.

But the fact still remains o2 can do what they have done in full compliance of the code(not law) and ofcom will not chastise o2.

[Anonymous]

Adam is right, because the figure quoted in all previous contracts up until 23 January is RPI, they've continued to use that figure.  There isn't any requirement to operate CPI or RPIJ figures.

Naturally, if RPI stops being a published figure then O2 would have to substitute it, but while it continues to be published then O2 will use it.

[Anonymous]

If they have any customers left that is

[Anonymous]

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@Anonymous wrote:
If they have any customers left that is

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I'd wager that O2 have an estimated % of customers that they think will leave, in addition to the about 1% who leave each year for cheaper deals elsewhere.  I'd also wager that the % they have thought of will be single figures, and they'll be proved right in time, when offset with the % who join o2 from other networks.

The vocal minority is still a relatively small minority.

[Anonymous]

Well we can only hope not and that O2 suffers where it hurts in the pockets which must be bulging

[Anonymous]

This was broadly similar to the posts I put out two days ago about too many on the network so they can afford to lose a few cheaper end contracts etc (along with a few expensive ones I am sure)

[davethorp]

If O2 are gambling on that the percentage of churn needs to be a very low 2.6% otherwise their revenue will drop.

Bearing in mind this will also hurt new connections as many more savvy consumers will not agree to contracts where rises are hard wired in when other networks are offering fixed contracts I cannot possibly see the effect on revenue being below 2.6%

[Anonymous]

davethorp you are bang on.

After all the hype few will cancel. Most will either accept, receive a discount or move to the cheaper options like Giff Gaff and Tesco Mobile. Now let me see, which networks do they use? ??

Will we see them move on price or is this part of a longer move away from handset subsidy?