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

[Anonymous]

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@davethorp wrote:
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%

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The increased money from the people staying will no doubt tip it back over the balance point, i.e they will cover the cost of the revenue drop from those who leave.

[Anonymous]

And with fewer users Pablo the signal / service will be considered better.

[Anonymous]

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@Anonymous wrote:
And with fewer users Pablo the signal / service will be considered better.

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That depends.  No-one knows which sets of people will leave ie people from places of high congestion or people in rural areas with low congestion.

[davethorp]

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@Anonymous wrote:

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The increased money from the people staying will no doubt tip it back over the balance point, i.e they will cover the cost of the revenue drop from those who leave.

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If fewer then 2.6% of their customer base don't cancel and fewer than 2.6% of people who would have signed up dont decide to go elsewhere than that is right. I can't see it myself though

[adamtemp64]

Well just look at this time last year the figures on telefonicas accounts did not show a drop in customers but a rise even  when o2 for the first time increased by rpi. But many said they were leaving.

When the dust settles and all the other networks update their T&C to be compliant with the guidance then we will all see as they all look non compliant apart from o2 to me using the examples I posted above .

http://www.telefonica.com/en/shareholders_investors/pdf/rdos13t3-eng.pdf page 61 shows contract grew each period and payg declined

[davethorp]

Last year all the networks were at it and it wasn't certain there would be future increases. This time 2 networks have announced they wont increase costs mid contract in compliance with the OFCOM ruling and O2 have announced annual increases for all and stuck two fingers up at their customers and OFCOM!

Think the churn will be very different this time around

[adamtemp64]

http://www.vodafone.co.uk/about-this-site/terms-and-conditions/pay-monthly-airtime-conditions/index.... vodafone current t&C 24th jan 2014 looks like a lot of press hype / misreporting.

C, Charges. I'll pay all charges (whether I use the SIM card or not), due under this agreement. The minimum price for the services provided under this agreement is the cost of all the plan charges for the minimum period (plus any one-off upfront charges). I must pay by direct debit. We sometimes have to put up our charges or change our services during your agreement. If this happens, we'll tell you beforehand. You can read more about this in clauses 7a & b.

[anticpated]

It appears they are legally covered and you're obliged to honour the contract and any changes. If for instance, you were to pay the remaining balance off in one foul swoop technically they would have no real grounds to own you in the contract, once you settled the full amount.

So ofwith the OFCOM recommendation is just words that have been "ignored" and guidelines that have been written to solely benefit the vendor (O2).

[adamtemp64]

Just remember that the way O2 T&C are written then if RPI (or other figure used to calculate it ) Drops to a negative figure then your contract price will drop (recession)

But all other networks will keep you on a higher price. (unless they adopt the allowed pricing structure of O2)

[Anonymous]

Would be nice to see the government drop the vat again would be just the right time to stop O2 making more money can't see it happening but would be great