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Mobile Price Increase: Just screwing with us?

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OK so lots of us probably have received letters recently saying our contracts are increasing. I got a letter this morning from T-Mobile my contracts going up a full £1.18 as it's £36 but with a £10 monthly discount... so a total of £27.18 a month for me.
I guess in perspective it's an extra £14 a year, right?
But I was thinking, there is never going to be a contract on their website for £37.18 am I right?
So either Case 1: new customers are going to be unaffected by the price increase and the contract will remain at £36
or
Case 2: mobile phone companies are going to round up their prices making this contract about £38 or more
So really aren't they just screwing over their existing customers? If case 1 applies, the existing ones foot the cost of inflation and if case 2 applies they're making saps out of all of us and actually making a bomb under the guise of covering costs.
It's all in the T's&C's but I still think its a bit shady when you think about it. Existing customers shouldn't be affected until they renew for example. At the end of the day, there'd be less people peed off and they'd still cover the cost, albeit a little later down the line.
Any thoughts?

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