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MSE News: O2 to hike its prices by 2.7% - can you leave your contract penalty-free?

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Comments

  • True.

    If I was to cancel my contract as it stands just now, I'd be looking at £200+ so what I don't get is O2's stance on "initially" refusing to cancel my contract following my first email to them, when O2 and myself know that if (and when) I take it to the ombudsmen it will cost them £300 a pop.

    They are being a wee bit silly. I'll wait for their next response and depending on the outcome of that, then I'll ask for a letter of deadlock and take it to the ombudsmen.


    its probably calling your bluff, hoping you wont take it any further like millions of other people.
  • GolfBravo
    GolfBravo Posts: 1,090 Forumite
    does it go anything like this.......

    Yes, exactly the same.
    "Retail is for suckers"
    Cosmo Kramer
  • If they do get back to me with a standard reply I will point out that going to the ombudsman will cost them more than they'd get from my contract!
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I contacted Ronan Dunne direct, had a standard response in regards to RPI so I went back and mentioned the increase in calls etc, no reply, so emailed again, no reply, emailed again, no reply so I called them today, got told the woman dealing with my case is out of the office until tomorrow and I would recieve a response tomorrow.

    I shall update when I get my reply.
  • Tropez
    Tropez Posts: 3,696 Forumite
    Kite2010 wrote: »
    Have you looked at Tesco Sim-Only deals, Tesco uses O2 network so you wouldn't have to worry about discovering any new poor signal areas.

    And Tesco has said they won't increase prices inside contract

    Bit of a late response but thanks for this. I keep forgetting Tesco Mobile exists. I had some issues with Vodafone so took a look at Tesco and sure enough a similar although not identical offer from Tesco was cheaper than both O2 and Vodafone so I made the switch, have my number ported and am now all set up on Tesco.

    I'm saving more than 50% by making the switch and not really losing anything in doing so. I no longer have unlimited texts but 5,000 a month might as well be unlimited because I rarely even send 10% of that, and the call allowance is generous enough that I don't think I'll be going over it more than 3 or 4 times in a year.
  • thedon
    thedon Posts: 41 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I've now had a response from the o2 Complaint Review Service, ultimately saying the price rises are allowed for in my contract and justifying the increases in it against inflation.

    I queried this clarifying my issue is specifically with the 50% increase in international calls and general out of bundle price rises, but they failed to respond to this, just sending the generic response below:

    Thank you for your reply

    We’re sorry you remain unhappy. This decision is a business decision, that’s why some of our responses may seem similar, Price increases are never welcome but inflation has an impact on our costs. We will continue to invest in the network and the services that matter to our customers. We hope we’ve clearly explained the reasons for this decision.

    This is our final position on the matter. Unfortunately, your complaint about the price rise does not fall within the independent Ombudsman’s remit. But if you have any other concerns that you feel we have not been able to resolve for you, or you wish to clarify the Ombudsman’s position, you can contact them on the details below for further advice:

    Ombudsman Services: Communications
    PO Box 730
    Warrington
    WA4 6WU

    Phone: 0330 440 1614
    Textphone: 0330 440 1600
    https://www.os-communications.org
    Email: enquiries@os-communications.org


    I will of course refer it to the Ombudsman, nothing ventured, nothing gained. If the Ombudsman doesn't back my case I've got my handset unlocked and will use a 3 PAYG sim on my US holiday next month.

    Whatever happens I'll be leaving o2 when I get to contract renewal in 10 months time
  • The Ombudsmen are refusing to look into it as they consider it to be a 'commercial decision'...

    Let us know if you have better luck.

    PS. I think Three still charge roaming fees on PAYG, may be worth double checking before you get out there
  • Is this the stage at which you would ask for a deadlock letter?
  • thedon
    thedon Posts: 41 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    The Ombudsmen are refusing to look into it as they consider it to be a 'commercial decision'...

    Let us know if you have better luck.

    PS. I think Three still charge roaming fees on PAYG, may be worth double checking before you get out there

    Oh dear, I thought the "feel at home" service allowed free roaming in the US?: http://blog.three.co.uk/2013/12/04/feel-at-home-now-includes-the-us-of-a/
    Have I misunderstood this?
    Thanks
    Jim
  • Here's my (slightly different) reply, but it still has the same old cut and paste job at the bottom.
    I've asked to be supplied with a deadlock letter so I can take it to the ombudsman.
    Thanks for your email to Ronan Dunne, he’s asked me to respond to you.

    I’m sorry to hear at the point of sale you were advised we wouldn’t increase our prices and you could also upgrade your phone to 4G when this was released, however you’ve since found this isn’t the case. I can appreciate how frustrating this is.

    You’ve explained the sales advisor assured you the prices wouldn’t increase and you could also upgrade your package to 4G as the iPhone 5 was 4G compatible. I understand you’ve since found the prices have increased and the iPhone 5 isn’t compatible with 4G.

    I’m very sorry if this is what you were advised and I will make sure feedback is passed to the area manager of the store regarding this matter. This isn’t the level of service we aim to provide.

    The iPhones 5 has never been advertised or launched as a 4G compatible phone. When the iPhone 5 was sold we also gave the following promise:

    Customers who bought an iPhone 5 from O2 between September and 31 March 2013 can upgrade during their contract to get their hands on a new phone any time they want.
    Not only that, we'll help you fast track the process and make it even more affordable to upgrade by chipping in 25% of the cost of your remaining line rental.
    Plus as we offer the best prices on O2 Recycle with a price match guarantee you could get up to £280 when you recycle your iPhone 5.
    How it works
    It's easy. Whenever you're ready to pick your new phone we'll discount 25% off your remaining line rental charges.
    Plus as we offer the best prices on O2 Recycle with a price match guarantee and you could get up to £280 when you recycle your iPhone 5 depending on your model.

    This promise was launched at the same time the iPhone 5 was released, this phone was never sold as being 4G compatible on the O2 network.

    I also understand you aren’t happy about the price increase and feel you can be let out of contract without charge, under the EU Law.

    The price increase is in line with the Retail Price Index (RPI) inflation rate that was announced on 14 January 2014. As we said in the announcement, we want to give customers the best possible service, for the best possible value. With the current Retail Price Index (RPI) rate of inflation at 2.7, the cost of everything is going up. As a result, we’re adjusting the price of Pay Monthly Tariffs in line with RPI.

    We're completely modernising our entire network and investing £1.5m every day on replacing and upgrading equipment to ensure our 2G and 3G networks continue to deliver the best experience for our customers. In just 5 months our 4G network is live in 13 cities and over 120 surrounding towns giving access to over 18 million people in the UK, that's 30% of the UK population. In the last year, we’ve also launched O2 Refresh and we continue to offer extras such as O2 Priority Moments, O2 Gurus, O2 Wifi and O2 Recycle.

    A price rise is never welcome but it is covered in your Pay Monthly Mobile Agreement, which comply with applicable law and regulation. Ofcom’s recent “fixed means fixed” guidance applies only to new contracts made after 23rd January 2014 and the terms and conditions you agreed to when you signed up stated that we are entitled to increase your monthly subscription charge by no more than RPI and no more often than every 12 months. These terms are compliant with the body of general consumer protection law. Our advertising has also said ‘tariff prices may go up' since January 2013.

    An increase of this kind does not entitle you to end your airtime agreement mid-contract without paying the remaining months of your subscription.

    I also understand you aren’t happy with the announcement about our price changes for some calls and messages. From the 28th February some prices will increase for out-of-bundle calls/messages that are chargeable once you have used up your free tariff allowance. These include: UK voice calls from 35p a minute to 40p a minute, texts from 12p to 15p. We are also increasing charges for some additional services such as MMS from 35p to 40p, and International call charges – as below:



    NOW

    From 1 March 2014

    Ireland

    20p

    30p

    Europe (EU)

    40p

    60p

    Turkey, Albania, Serbia, Croatia, Bosnia, Macedonia, Montenegro, Algeria, Libya, Morocco, Tunisia

    50p

    80p

    USA / Canada

    40p

    60p

    Australia, Christmas Island, Cocos Islands, Hong Kong, Malaysia, New Zealand, Singapore, South Africa, Tokelau

    60p

    80p

    Zone 6 - Rest of World

    £1.00

    £1.20


    A price rise is never welcome but our terms and conditions have always stated that charges outside your monthly subscription charges and for additional services are subject to change. We also explain what such changes might mean for you.
    There’s more information about this on our website: https://www.o2.co.uk/prices.

    We hope this provides you with an adequate explanation and makes our position clear.

    Kind regards

    Jodie Moakes | Telef!nica UK Limited
    Executive Relations
    T 0845 330 0683
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