O2 is putting up its prices. The oxygenated network is adding 3.2 per cent to the monthly bill of every customer in February next year -- but the small print means you can't break your contract.
"We've held off putting our tariff prices up for as long as possible, even when our competitors raised theirs", says O2. "But now, because of inflation, we need to change the price of your tariff."
Curse you, inflation! The increase is a 3.2 per cent hike on your line rental, the flat fee you pay each month. So for example, if you pay £20 per month your new bill will be £20.64. If your bill is currently £30 per month, your new bill will be £30.96.
Texts, calls and minutes still cost the same and your allowances aren't changing. Mobile broadband deals are unaffected. The changes come into effect on 28 February 2013.
To see how your bill will change, type in what you currently pay to O2's price change calculator, which will tell you how much your new bill will be.
O2 has twice suffered major network outages this year, and has promised to invest £10m into the network. But if this price hike is the last straw, there's no escaping your contract.
O2 points to clause 5 of your contract's terms and conditions, which specifies that the network is allowed to change prices from time to time, as long as you get at least 30 days notice. As it's in the Ts and Cs of the deal you signed, you won't be able to use the price hike as an excuse to get out of your contract without paying a fee -- probably the total amount you would have paid over the remainder of your contract.
What do you think of O2's price hike? Is your network value for money? Tell me your thoughts in the comments or on our Facebook page.
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Comments 35
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anonymous 12 December, 2012 09:58
what doesn't go up in the monthley bill department. Nothing gas up 10% elecy almost the same. It's depressing
jopov123 12 December, 2012 10:14
Go the same route as a lot of us, buy a phone and move to giffgaff. Cheaper in the long run as you are only paying for what you actually use per month. Contracts at £35-50 a month are not very good if all you use is data and a few calls/texts per month.
anonymous 12 December, 2012 10:22
This news comes 2 days after I find out O2 users don't get the wifi on tubes for free
Looks like I'm not renewing with O2 come summer
AkumaJack 12 December, 2012 11:02
O2....all these little things add up.
Matt Winston. 12 December, 2012 11:25
That's the thing with contacts, the networks are bound to charge you some made up fee or raise their prices and use ridiculous excuses. Sim free is the best option.
anonymous 12 December, 2012 11:38
Definitely not staying with o2 after march...
Comm'on its just 3G not even 4G network ufff.
Craig Barratt 12 December, 2012 12:29
Vodafone have already done the same thing, I will not be renewing as a matter of principle. When I start a contract I expect it to remain at the stated price for the duration of the committed period, I could argue that my costs have gone up and that I stated I would amend the amount of data required at a later date, its basically a con, and because of the relatively small cost we don't complain, well I will be voting with my wallet and the big red will be getting dumped. I dare Vodafone to try and retain the business, I just dare them.
anonymous 12 December, 2012 12:56
Just came off an Orange contract because of a price hike. So I'm not surprised these guys are doing it too. Revel in the irony; they named themselves after the molecular symbol for Oxygen, but they'll strangle every last penny out of you.
anonymous 12 December, 2012 13:28
jopov123 can you switch your number over from 02 with one of their sim cards? How much do they do unlimited internet for?
anonymous 12 December, 2012 13:38
mine runs out in Feb and having ordered a nexus 4 i wont be renewing!
anonymous 12 December, 2012 14:43
http://www.which.co.uk/campaigns/technology/fixed-means-fixed/
anonymous 12 December, 2012 15:38
That is why for the last 6 years I have moved to pay as you go on O2, got fed up with same stupid excuses every time, cost of this gone up, cost of that blah blah...also when they started with 24 months contract! How many of us are actually reading a small print to see and to know what is hidden in the contract? Not many as I know, and I think they are aware of that so they can use it against their customers who really need their phones.
anonymous 12 December, 2012 18:21
Being a Spanish company are Telefonica unable to keep up with the rest? No idea when they will offer fibre broadband.
anonymous 12 December, 2012 19:30
Is there any technical limit to the rises that O2 can impose upon us? I mean, 3% isn't good but does this give them the right to hike them 20 or 50% if they wish?
I've been with them for years - currently a third of the way through a two-year contract. After the outages, I'm never renewing with them again. Hope they enjoy their extra 60p for twelve months.
anonymous 12 December, 2012 23:53
If the price increase was excessive it could be argued that the term in the contract was unfair. However they will keep getting away with this until more people get off contracts. It's interesting to see how many people sign up to the 24 month contracts thinking they are getting a good deal because they get a phone at a rock bottom price. It's rarely a good deal. I've worked as a consumer journalist and for one of the operators, so I see this from both sides.
The operators are all extremely wealthy and don't need to increase prices except to fund the purchase of their new 4G licences in the new year.
Consumers need to start reading their contracts and thinking about whether or not it's worth committing to 24 or even 18 month contracts.
I haven't and will never sign anything more than an 12 month contract, and that has to include a handset that is likely to retain the vast bulk of it's value for resale at the end of that period.
anonymous 13 December, 2012 00:23
I seem to remember a big sign in the shop stating a price with a subheading saying 24 month contract. Everything about the way the rates are advertised implies 'fixed' so I actually wonder if a term and condition stated in 4 point text in sub clause 41b of term number 3,481 would actually stand up in court. I hope someone tests it. I'll be checking my contract when I get home.
Further to this I think that justifying this because of inflation is a cynical ploy. Any sensible company pricing a 24 month contract would hedge for inflation, so basically they're charging you for inflation twice.
Of course it's a few pence per month. Not enough to fight too hard, but ample for me to walk away from o2 in March. Someone suggested GiffGaff and I have a mate who is really pleased with them. Maybe, like Starbucks, O2 and the rest will learn if enough of us vote with our feet
PETE
anonymous 13 December, 2012 10:05
Pete, note that GiffGaff was set up and is owned by O2.
anonymous 13 December, 2012 12:03
Not renewing, fu_ck o2
anonymous 13 December, 2012 13:55
PETE - that tiny 4 point clause will hold up in court, that's what contracts are for. Also the big sign you saw will have had an asterisk with a tiny 4 point *terms and conditions apply at the bottom of the poster.
Unfortunately a lot of people have a strong desire to own the latest and greatest without the means to purchase it outright, so contracts will be around for a long time to come.
anonymous 13 December, 2012 14:47
its like an addition of 64p?! quit moaning you losers.
anonymous 13 December, 2012 18:55
@anonymong 14:47 I'll keep this simple shut it!
anonymous 13 December, 2012 19:53
Or skip over to Giffgaff, which uses the O2 network. £10 for 250 min/1Gb/unltd txts or £12 for 250 min/unltd data/unltd txts!
http://giffgaff.com/orders/affiliate/tunnser
anonymous 13 December, 2012 19:54
Or skip over to Giffgaff, which uses the O2 network. £10 for 250 min/1Gb/unltd txts or £12 for 250 min/unltd data/unltd txts!
http://giffgaff.com/orders/affiliate/tunnser
anonymous 14 December, 2012 12:29
I've been with o2 since 2006 but their tariffs are getting poorer each time I upgrade and including these price hikes I won't be renewing next time.
babadee007 14 December, 2012 12:39
Not sure what to do. I am almost at the end of my contract with three. should i get a sim free phone and then go on a pay as you go tariff? which is the cheapest option? advise please.
anonymous 14 December, 2012 15:42
@babadee
I've just come to the end of my contract with Three too, As i have an Iphone4 I'm going to go sim only with Three as the network in my area is pretty good.
I suppose it depends on if you want an upgrade now or not or if your happy with Three. personally i didn't want the hassle of buying Giff Gaff every month & wanted it sorted on a rolling Monthly contract. that i can upgrade or Kill when it suits me + if you stay with Three on a sim only deal you are still entitled to your phone upgrade at a later date.
Ultimate Internet SIM 200 1 month. All-you-can-eat data 200 minutes 5000 texts
£12.90
or
Essential Internet SIM 200 1 month. 500MB data 200 minutes 5000 texts
£9.90
Kevin
babadee007 14 December, 2012 18:18
Thanks Kevin, good advice. I will consider sim only deal.
anonymous 14 December, 2012 18:34
Giffgaff is not owned by o2, it just uses their network, the same way tesco does. On the contract issue I decided its all crap & have paid off the remainder of my two year contract at a one off cost £145.49p & good ridance !!!
anonymous 15 December, 2012 20:34
I have an email fro O2 saying my SIM free will be going up, but nothing yet on the contract phone.
anonymous 16 December, 2012 08:14
Those who've just signed 24 month contracts recently, don't panic just yet becuase I'm pretty sure I've opened a nice can of worms for both the 3rd party retailer and o2.
It seems the contract I signed instore is rather different from the contract I was sent in the post.
Under clause 5 of 'my' instore o2 contract,' Charges for Service, there is nother about price changes at all, that comes later in the following clause;
11. Changes to the Agreement
We may change this Agreement and the charges at any time. If we increase the charges for elements of the Service you are using or change this Agreement to your disadvantage we will give you 30 days' notice before the changes take place.
Now for the juicy bit, 8.x Ending the Agreement, your 'get-out-of-jail free' clause.
8.3 if this Agreement is end during the minimum period, you must pay the monthly subscription charges up to the end of the minimum period. This does not apply if you end the Agreemnt for the reason in paragraph 8.4.
8.4 You may end this agreement at any time by giving us notice:
(a) N/A
(b) N/A
(c) we increase any of the charges for the elements of the Service you are using or change this Agreement to your disadvantage. In this situation paragraph 8.3 will not apply.
Unless I've missed something, while you can't hold them to the original deal, you can at least get out without being held to the remaining charges of the contract.
Bet it will be hell when I put this to them though :(
anonymous 16 December, 2012 22:49
I signed up to £6.90 per month on Three for 12 months, 200 min 5000 txtz and 500MB then called to them up to apply a cap so i dont overspend, good deal.
anonymous 17 December, 2012 19:53
This is like something mugabe's or Putins regime does and there is nothing apparently we can do just sit back and get gang raped by these people....stick together out of principle and if every last one of us cancelled our DD what would or could happen
anonymous 18 December, 2012 13:44
Everyone, please visit the Which? web page regarding this :
http://www.which.co.uk/campaigns/technology/fixed-means-fixed/pledge-your-support/
They have a campaign called 'Fixed means Fixed'.
Read the whole article and decide whether or not you want to pledge to support the campaign.
anonymous 19 December, 2012 06:29
Guys
It's not that punishing. They can increase the costs once per annum, and up to no more than the published rate of RPI. Any more than that, and you can cancel without charge.
However, what is devious on their part, is that they obviously knew that the RPI was going to fall in November, so they sent out their advisory five days before the ONS published the figures. It's only 0.2%, but still, it really does make you feel that they're PR department are a bunch of idiots.
anonymous 14 January, 2013 12:52
I've arrived pretty late to this forum! There may be nothing we can do, but you can make things more difficult for O2 - cancel your direct debit, wait for your monthly bill and then pay by cheque.
This won't help us but will be expensive for O2 to process - many times the extra charge.
And don't sign up to O2 again, obviously!