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O2 new contract prices & recent 3.2% increase

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romeroe
romeroe Posts: 37 Forumite
Hi all,

Still fuming with O2 about their recent RPI increases I have been watching their website very carefully over the last few days to see what their new pricing levels will be for new customers as clearly they will not be wanting to sell new contracts with strange monthly amounts.

I'm currently half way through a 24 month contract paying £18.99 (previously £18.50) for 100 minutes, 500 texts & 100MB. Their website now shows contracts at £14 for 100 minutes, unlimited texts plus 250 MB data!!!

Clearly such a pricing structure must generate revenue for them so they are just taking advantage of existing customers to make the prices cheaper to rope in new ones...

Surely they are now caught in a lie?

Rom
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Comments

  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    romeroe wrote: »
    Hi all,

    Still fuming with O2 about their recent RPI increases I have been watching their website very carefully over the last few days to see what their new pricing levels will be for new customers as clearly they will not be wanting to sell new contracts with strange monthly amounts.

    I'm currently half way through a 24 month contract paying £18.99 (previously £18.50) for 100 minutes, 500 texts & 100MB. Their website now shows contracts at £14 for 100 minutes, unlimited texts plus 250 MB data!!!

    Clearly such a pricing structure must generate revenue for them so they are just taking advantage of existing customers to make the prices cheaper to rope in new ones...

    Surely they are now caught in a lie?

    Rom

    They are different tariffs though, your tariff may include stuff (other than the extra 250mb data), like international saver schemes or free voicemail.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 March 2013 at 2:47PM
    Prices do get cheaper in real terms year on year. What changes is our insatiable desire to find new ways to use mobiles and eat up data, and accordingly the providers find new things to charge us for.
    Until about 3 years ago, only Blackberry addicts wanted a data component in their tariff. Now it's about 70% of the market.
    OP, if you don't want to see contract prices for others drop drop after the 1st 12m while you're still locked in, then forsake shiny new handsets every two years, and get a cheaper deal with a 12m contract, or a SIM-only deal.
    No free lunch, and no free laptop ;)
  • romeroe
    romeroe Posts: 37 Forumite
    macman wrote: »
    Prices do get cheaper in real terms year on year.

    This is exactly my point! How can they justify mid contract RPI increase on the basis of their "increased costs" yet offer cheaper contracts to new customers as their costs are getting cheaper in real terms year on year.... both statements cannot be true...
  • minislim
    minislim Posts: 357 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    put my request in to cancel my contract. i wasnt aware that the newer contracts for new customers where better till i looked! i'll keep you posted on what happens.

    call cost are the same but the new contracts include unlimited texts and 250mb of data. for £14!

    im paying £16 and getting less than that so i pay an addiditional £6 for a 500mb bolt on!

    so im fuming too!
  • socrates
    socrates Posts: 2,889 Forumite
    You do realise that every 6 months you can upgrade with O2 - this updated tariff may be considered as an upgrade

    Give them a call and find out
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    minislim wrote: »
    put my request in to cancel my contract. i wasnt aware that the newer contracts for new customers where better till i looked! i'll keep you posted on what happens.

    call cost are the same but the new contracts include unlimited texts and 250mb of data. for £14!

    im paying £16 and getting less than that so i pay an addiditional £6 for a 500mb bolt on!

    so im fuming too!

    Which was the advertised rate (certainley in the past at least)
    £3 for 100mb £6 for 500mb and £10 for 1gb
  • minislim
    minislim Posts: 357 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    i've delved a bit further and shockingly i have found that currently i am effectively £3 a month worse off than an new customer on O2.

    as they only have to only stump up £5 to double their data allowance to 500mb.

    so as i pay £1.50 more for technically less. new customers pay £1.50 less and get unlimited texts.

    i had my reply back too from O2. the usual blah blah blah! we thought about it alot.

    no they didnt! they knew they could penalise existing customers as they are locked into a contract. just so they can reward their new customers.

    and yet their adverts harp on about rewarding loyalty.
    i think they are going to get a rude wakeup call soon when more loyal customers leave.

    i have 6 months left on my contract so luckily i am only really going to be £18 out of pocket.
  • Steveseven
    Steveseven Posts: 70 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    I thought this was with OFCOM at the moment, Yes companies can increase prices (hidden in the small print) but if a contract says X price and thats the price you were sold then they should honour that or .........

    Try You and Yours on the BBC R4
    :D
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Steveseven wrote: »
    I thought this was with OFCOM at the moment, Yes companies can increase prices (hidden in the small print) but if a contract says X price and thats the price you were sold then they should honour that or .........

    Try You and Yours on the BBC R4

    Have a look at your contract for the part where it mentions your monthly price ;)
  • minislim
    minislim Posts: 357 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    here's another update.

    explained to the customer relations person i was dealing with on the financial detriment that their price increases where causing to me.

    gave them three options to sort it.

    1) cancel my contract penalty free. so i can start a new one with them at their raised prices.
    2) move me onto the equivalent newer tarrif which actually offers more for less money for the remaining 6 months of my contract.
    3) credit my account with the money i was in financial detriment of to cover the next 6 months i was out of pocket.

    they've totally rejected all three options. i've tried to resolve this diplomatically.

    so i've now taken it up with the obudsman.

    in the mean time i've contacted some of my friends who where on O2 contracts. most were unaware their contracts had been hiked (so much for clearly letting customers know).

    i've got 3 friends who've now left O2 in the last week. i pointed out much better sim only deals with another network and they're saving quite a bit now.
    another 12 or so are going to leave as soon as their contracts are up.

    O2 have really shot themselves in the foot. i've been a loyal customer and this is how they repay loyalty. by penalising existing customers.

    so im penalising them by spreading the word and getting customers to leave them! hehe!
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