MSE News: Three to raise mobile prices

The_Grateful_Ghoul

Call me old fashioned but when I sign a phone contract, I agree to pay a monthly fee for an agreed period. If a business can't plan 24 months ahead and price its services accordingly, there is something very wrong with the business model.

The reality is many customers now sign a 24 month phone contract, only to discover that their phone is out of support after 12 months if it becomes faulty and worse still there monthly payments might increase too.

In the modern world, it appears that contractual agreement means nothing and a toothless tiger known as OFCOM do little to help or make these new terms and conditions clear to customers before they sign.

Companies such as THREE hide behind overseas call centres who have little grasp of the English language or empathy for their customers and instead rely heavily on a script, whilst becoming very rude if asked to deviate from it.

The fact Three have increased the price in a sneaky manner and then hide behind an overseas call centre just feels a little underhand but I hope punters vote with their feet when their contract expires.

The best way of getting a response would via their public facing social media presence.

Facebook - https://www.facebook.com/ThreeUK
Twitter - https://twitter.com/#!/Threeuk

I have also created a Facebook Page, using points raised on this forum.
https://www.facebook.com/SayNoToThreeMobile36PriceRise

drbesty

If I was in India, working a 15 hour day till 3am in a cell centre for £8 a week and I had some overpriviliged Englishman moaning about a price rise of 3% a month I'd probably be quiet rude as well

The_Grateful_Ghoul

drbesty wrote: »

If I was in India, working a 15 hour day till 3am in a cell centre for £8 a week and I had some overpriviliged Englishman moaning about a price rise of 3% a month I'd probably be quiet rude as well

I am not on overpriviliged Englishman but simply a family man that has two Three contracts. My impression of my fixed 24 month contract was that it was fixed in price, the fact they bury such information deep in their T & C is highly unethical.

If you are also suggesting that THREE are also exploiting overseas workers by paying them only £8 a week for a 15 hour shift till 3am in a cell centre, then this too would be highly unethical.

If inflation had gone down i wonder if the phone companies would have dropped their prices?

MarkBargain

I just did a web chat on the Three store and was assured that if I bought a phone with them on a £10-a-month contract and didn't go over my allowances, it would never cost more than £10-a-month:

[Asif] Hi, welcome to Three.

[Asif] How may I help you buy a new deal today?

[Visitor] Hi, I am looking at the Wildfire S on a £10-a-month contract. Is that the price for 24 months?

[Asif] Thanks for showing your interest in Three. I'll be glad to help you with your purchase today.

[Asif] All the phone contracts with Three are for 24 months.

[Asif] That’s a fantastic phone you have selected, would you like me to help you with the features of the phone?


[Visitor] So it would cost £10 x 24 = £240 and definitely no more?

[Visitor] Yes, it looks nice.

[Asif] All the prices which you see are including VAT.

[Asif] If you're within your monthly allowance every month then it'll cost you £10 monthly.

[Asif] Are you looking to join Three or are you looking to renew your existing Three contract?

[Visitor] Right, OK. So if I don't go over my allowance it would never cost any more than £10 for the 24 months?

[Asif] That's right.

[Visitor] Thank you.

MrsBartolozzi

MarkBargain wrote: »

I just did a web chat on the Three store and was assured that if I bought a phone with them on a £10-a-month contract and didn't go over my allowances, it would never cost more than £10-a-month:

[Asif] Hi, welcome to Three.

[Asif] How may I help you buy a new deal today?

[Visitor] Hi, I am looking at the Wildfire S on a £10-a-month contract. Is that the price for 24 months?

[Asif] Thanks for showing your interest in Three. I'll be glad to help you with your purchase today.

[Asif] All the phone contracts with Three are for 24 months.

[Asif] That’s a fantastic phone you have selected, would you like me to help you with the features of the phone?


[Visitor] So it would cost £10 x 24 = £240 and definitely no more?

[Visitor] Yes, it looks nice.

[Asif] All the prices which you see are including VAT.

[Asif] If you're within your monthly allowance every month then it'll cost you £10 monthly.

[Asif] Are you looking to join Three or are you looking to renew your existing Three contract?

[Visitor] Right, OK. So if I don't go over my allowance it would never cost any more than £10 for the 24 months?

[Asif] That's right.

[Visitor] Thank you.

Oh, thanks for reminding me. I asked the very same question when I took out my my contract in December and got the same reply. I hope they still have the tape...

completelyterrified

drbesty wrote: »

Everyone's crying about their consumer rights and moaning about the principle of the matter when really you're all just thinking 'Mmmmm free smartphone'

Actually, I'm in a pretty difficult financial situation now, as are many others, and the opportunity to cancel early and move to one single contract at £10-15 per month would be a huge relief to me, potentially allowing me to climb out of a debt hole.

I could have just gone the route of not paying, but instead I've stuck with paying the three contracts I have (long story) because I took them out, and I don't like to welch on my debts. However, if the firm is going to try and wrangle extra money out of me, and lie about their T&Cs in order to do it, then yeah, I'm going to take that opportunity to try and improve my situation.

Not everyone's in it for the free ride...

JakeMM

This is my reply from Ofcom:

Thank you for your web submission of 23 May 2012 in which you queried the price increase by Three.
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With regards to you advising that you have read on line that we have allowed some other phone companies to increase their prices, I can confirm that we have had a number of complaints about price increases by various providers, and acknowledge that many consumers feel unhappy about these changes. It may first be helpful to explain that there is no legal reason why a provider, such as Three, cannot include a term in a consumer contract allowing it to make changes to that contract; however, such a term may be unfair under the relevant consumer law (The Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs)) if it causes a significant imbalance in the parties rights and obligations to the detriment of the consumer.
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Additionally, under Ofcom’s rules (the General Conditions), where a provider makes changes that are likely to cause a consumer material detriment, they must give a minimum of at least one month’s notice, and allow the consumer to withdraw from the contract without penalty.
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In the context of considering similar changes by another provider within the industry, we recently concluded that a contract term which allowed the provider to increase charges by an amount equal to or less than the Retail Price Index (RPI) in any 12 month period was likely to be acceptable under the UTCCRs, provided the term has been clearly brought to the consumer’s attention. We also considered this issue under GC9.6 and have concluded that, in general, a rise of 4.34% was unlikely to result in a material detriment to the majority of those customers affected. Whilst we have not carried out a detailed assessment of Three’s price increase or contract term, the same conclusions are likely to follow in this case given that Three’s increase of 3.6% is currently below the level of RPI.
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However, we understand that whether or not a consumer suffers material detriment will ultimately depend on their individual circumstances. As such, if you believe you have suffered, or will suffer, material detriment, you should contact Three and provide evidence to support your claim. Three also has a dedicated web page relating to information about the changes: (Can't post links yet)
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Hopefully, by raising your concerns with the related evidence, you will be able to resolve your complaint. However, if you are unhappy with Three’s response, you should follow their complaints procedure. This can be found at: (Can't post links yet), or should be provided upon request by Three’s customer service.
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Whilst the final stage in Three’s complaints procedure refers to the Alternative Dispute Resolution (ADR) scheme (‘Communications Ombudsman’), please note that the Ombudsman is not able to consider complaints about the fairness of price increases generally. However, where a customer has concerns that Three has not followed the procedure to introduce such a price increase, The Ombudsman may be able to consider this on a case by case basis.
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I hope the above information proves useful and I can confirm I have registered your complaint here at Ofcom.
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Yours sincerely
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Sandra Sutton
Consumer Contact Team

JakeMM

MarkBargain wrote: »

I just did a web chat on the Three store and was assured that if I bought a phone with them on a £10-a-month contract and didn't go over my allowances, it would never cost more than £10-a-month:

[Asif] Hi, welcome to Three.

[Asif] How may I help you buy a new deal today?

[Visitor] Hi, I am looking at the Wildfire S on a £10-a-month contract. Is that the price for 24 months?

[Asif] Thanks for showing your interest in Three. I'll be glad to help you with your purchase today.

[Asif] All the phone contracts with Three are for 24 months.

[Asif] That’s a fantastic phone you have selected, would you like me to help you with the features of the phone?


[Visitor] So it would cost £10 x 24 = £240 and definitely no more?

[Visitor] Yes, it looks nice.

[Asif] All the prices which you see are including VAT.

[Asif] If you're within your monthly allowance every month then it'll cost you £10 monthly.

[Asif] Are you looking to join Three or are you looking to renew your existing Three contract?

[Visitor] Right, OK. So if I don't go over my allowance it would never cost any more than £10 for the 24 months?

[Asif] That's right.

[Visitor] Thank you.

Unfortunately, the price increase is only for people who bought contracts before a certain date within the last few months (I can't remember the specific date at present) and so might actually be right that the price won't go over £10.

We've got two iPad's and the price increase only applies to the oldest one, even though they're both meant to be £25 a month.

I think it would have been far better to increase the contract price of their current deal, then make extra money out of the old contracts they've sold.

I also don't see how they can say they need to put their prices up in line with inflation, and then carry on charging the lower rate for new customers!

grumbler

JakeMM wrote: »

Unfortunately, the price increase is only for people who bought contracts before a certain date within the last few months (I can't remember the specific date at present) and so might actually be right that the price won't go over £10.

You missed the point. Just imagine that this chat took place "before a certain date within the last few months"....

I also don't see how they can say they need to put their prices up in line with inflation, and then carry on charging the lower rate for new customers!

They don't carry on.

MarkBargain

JakeMM wrote: »

Unfortunately, the price increase is only for people who bought contracts before a certain date within the last few months (I can't remember the specific date at present) and so might actually be right that the price won't go over £10.

But if their policy is to increase prices with inflation, surely next year the new £10 contract would be increased in 2013. The chat states that it would not be increased, whereas presumably there is a good chance it will.