Sim only 12 month deal

[DavvyC]

I found a deal on U switch for a 40gb sim with free calls& texts at £10 for a 12 month contract, with future increases linked to CPI plus 3.9%. 

 2 questions please:

1) Presumably the increase only applies after the 12 months, albeit the increase is determined  by the CPI in March next year?

2) If so, I assume that I have to give  1 month's notice prior to the 12 month end date to cancel/renegotiate the deal ?

Seems too good to be true

Many thanks

[MI5 · Accepted solution]

@DavvyC 

The annual increase is applied each year to the April bill.

You won't be able to renegotiate until July 2023 so will have the price increase next April.

[DavvyC]

Thanks for that -  I thought so!