Talkmobile increase contract monthly charge

grumbler

jimkenyon wrote: »

I would also point out that the increase is being applied to that part of the contract that covered the handset cost (the main element of most contracts) - wheres the inflation there?

Time value of money

£100 paid in (or over) 2 years is not the same as £100 paid today.

jimkenyon

grumbler wrote: »

Time value of money

£100 paid in (or over) 2 years is not the same as £100 paid today.

So you are saying that I should now pay extra for the handset that I obtained at the start of the contract? There have been no additional costs to Talkmobile resulting from the handset that they obtained for a fixed price from the manufacturers at the start of the contract.

mije1983

jimkenyon wrote: »

Talkmobile will gain an extra 6 pounds from me but will then lose a customer at the end of my minimum term.

Most of the networks have now increased their prices. Plenty of threads on here about them all. So it's impossible to avoid (at the moment at least). I have been with O2 and T-Mobile when they put prices up mid-contract.

I'm not going to cut off my nose to spite my face. They wouldn't miss my money in the slightest but if they offer the best deal at my next renewal, I will take advantage.

macman

The 'principle' is that mobile contracts have never been fixed price. The networks have always been able to increase prices at any time they liked-and customers have been able to leave without penalty if they do.
What's changed in the last couple of years is that almost all the networks have begun to implement their existing right to increase prices, with 02 finally doing so in February.

grumbler

jimkenyon wrote: »

So you are saying that I should now pay extra for the handset that I obtained at the start of the contract?

Well, I am just playing a devil's advocate.
Say, they gave you a loan with the total price you pay based on zero or low inflation.
In fact inflation is not zero or higher than expected.
Because of the TVM the total amount they receive is smaller than expected.
As simple as that.

There have been no additional costs to Talkmobile resulting from the handset that they obtained for a fixed price from the manufacturers at the start of the contract.

No additional costs doesn't mean that it makes no difference to them if you pay the total amount today, in a year or in two years. TVM. The later you pay, the more the real value of your money depends on the inflation.

And no, I am not saying that the inflation was higher than expected. I am just trying to explain that inflation does matter for the amount you pay for the handset.

MillicentBystander

I think some of you are missing the point. Yes I'm sure this increase is totally covered by Talkmobile's T$cs but that doesn't automatically make it 'right'. I'm sure it was in the govt at the times' T&Cs that women couldn't vote for instance but was it 'right'? Of course not.

Seems to me all the advantages in this 24 month legally binding contract are in the hands of the mobile company and not the customer who has effectively signed his/her mobile life away for the next 2 years. The least they can expect, surely, is that unless there is a change in Vat or some other unexpected govt initiative that disadvantages the company and its contract price, the monthly price they signed up for remains the same for the duration. It's not like this can't be done, afaict 2 companies have so far pledged to do just this.

Guys_Dad

The fact that two have pledged and Tesco make a point in their advertising indicates that the others do make mid-term increases (which most of us knew anyway).

The regulator is "looking at this" but slowly. Until then, I will go for the best deal for me whenever I renew.

grumbler

MillicentBystander wrote: »

I think some of you are missing the point. Yes I'm sure this increase is totally covered by Talkmobile's T$cs but that doesn't automatically make it 'right'. I'm sure it was in the govt at the times' T&Cs that women couldn't vote for instance but was it 'right'? Of course not.

I's like saying that fixed mortgages and fixed rate saving accounts are right, but flexible mortgages/savings are wrong.

The only what is really wrong with mobiles is that the fact is not made clear enough at the time of purchase.

jimkenyon

I guess that the mobile phone companes are incapable of taking inflation into account when they set up a two year "fixed" contract. Or do they just take us for mugs with their T&C's?

Guys_Dad

jimkenyon wrote: »

I guess that the mobile phone companes are incapable of taking inflation into account when they set up a two year "fixed" contract. Or do they just take us for mugs with their T&C's?

You are overlooking the fact that these are open-ended contracts with a minimum period, usually for 2 years.

Now you are not saying that for ever and a day they should stay at the initial price? (Actually, that would normally be a bad deal for the buyer unless it was a sim-only contract.)

So, you are actually asking for a fixed price minimum term element.

I fixed my gas/electricity for 12 months. It cost me a little more when I did it, but has worked out for me. One mobile company is offering what you want, but the premium is silly.

Until the regulator rules differently, I intend to roll with the RPI increase but go with the best deal when I change, regardless if they have increased my contract since I last renewed it, or not.