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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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  • Kite2010
    Kite2010 Posts: 4,308 Forumite
    Part of the Furniture 1,000 Posts Home Insurance Hacker! Car Insurance Carver!
    I wonder what Ofcom will make of the price increases, will add more coals to the "fixed means fixed" campaign ran by Which (I think).

    If O2 can get away with it, just wait for the other companies to increase prices.
  • Tropez
    Tropez Posts: 3,696 Forumite
    edited 26 January 2014 at 12:39PM
    Currently Vodafone are offering significantly lower SIM-only deals than O2 on most competing tariffs so I've chosen to switch over after ~10 years as an O2 mobile customer.

    I've no doubt that Vodafone are just as likely to raise their prices at some point during my contract but the fact is that for what I need as it stands I'm saving nearly £100 per year by making the switch.

    And the truth is really I have nothing against O2 and would have preferred to stay with them for convenience sake and for the fact that it's better the devil you know (of all the major networks in their various incarnations, Vodafone is the one I've never used before) but their retention offers were absolutely rubbish and mostly resulted in me getting less but paying more for the privilege. They were more focused on what they thought I needed as opposed to what I actually wanted.

    I think the mistake O2 have made is that their current tariffs are virtually all designed around 4G which is something I have no current interest in. The most I use mobile data for is Email, Twitter, maybe FB sometimes and browsing news apps. I don't use Youtube, Netflix etc. while out and about and all my music playlists on Spotify are downloaded to my SD card.

    During O2's attempts at negotiations they even tried to offer me a more expensive contract before extolling the virtues of 4G and even when I told them I don't have a 4G-capable phone they still attempted to ram home the benefits of 4G.

    Vodafone, currently, give greater variety when it comes to SIM-only deals with more options for those, such as myself, who don't use lots of data but like the luxury of high call allowances as having different tariffs for those who are looking to benefit from 4G.

    With the news that they would have raised my price anyway (something the advisor trying to sign me up to another contract did not mention once) I'm confident that I've made the correct decision in moving away from them. Hopefully, in the future, they will realise that not all of us require 4G and reinstate some of their formerly great-value contracts.
  • Kite2010
    Kite2010 Posts: 4,308 Forumite
    Part of the Furniture 1,000 Posts Home Insurance Hacker! Car Insurance Carver!
    Tropez wrote: »
    Currently Vodafone are offering significantly lower SIM-only deals than O2 on most competing tariffs so I've chosen to switch over after ~10 years as an O2 mobile customer.

    I've no doubt that Vodafone are just as likely to raise their prices at some point during my contract but the fact is that for what I need as it stands I'm saving nearly £100 per year by making the switch.

    And the truth is really I have nothing against O2 and would have preferred to stay with them for convenience sake and for the fact that it's better the devil you know (of all the major networks in their various incarnations, Vodafone is the one I've never used before) but their retention offers were absolutely rubbish and mostly resulted in me getting less but paying more for the privilege. They were more focused on what they thought I needed as opposed to what I actually wanted.

    I think the mistake O2 have made is that their current tariffs are virtually all designed around 4G which is something I have no current interest in. The most I use mobile data for is Email, Twitter, maybe FB sometimes and browsing news apps. I don't use Youtube, Netflix etc. while out and about and all my music playlists on Spotify are downloaded to my SD card.

    During O2's attempts at negotiations they even tried to offer me a more expensive contract before extolling the virtues of 4G and even when I told them I don't have a 4G-capable phone they still attempted to ram home the benefits of 4G.

    Vodafone, currently, give greater variety when it comes to SIM-only deals with more options for those, such as myself, who don't use lots of data but like the luxury of high call allowances as having different tariffs for those who are looking to benefit from 4G.

    With the news that they would have raised my price anyway (something the advisor trying to sign me up to another contract did not mention once) I'm confident that I've made the correct decision in moving away from them. Hopefully, in the future, they will realise that not all of us require 4G and reinstate some of their formerly great-value contracts.

    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
  • I just called 02 about upgrading my phone (Ive been on SIM only for 8 years.
    Their call centre did not know about the offcom ruling (or claification if you prefer). When they went off and checked, they said it didn;t apply to them, and as they were putting up pries at below inflation there is nothing s customer can do. They reiterated that even though they hadn't heard of the offcom culling it didn't apply to them.

    I called EE to see if they could confirm what it would mean if I switched to them and they said so long a their rises were not above the RPI they could increase it as often as they liked so long a they told you before hand. how many times then can you increase a tarrif over a 24 month contract before it becomes illigal?

    There is nothing in this BBC article about the customer being lumbered if the tarrif increase is below the RPI.

    I can't post the link beecause MSE thinks I'm a new user (quite offedned as I joined 6 years ago) How long is new, new for?
    :(
    I give up!

    OFcom website is on about changes in the EU that take effect in May.

    I have no idea now what my rights are or arnt as a customer. I'm beginning to think the safest thing to do is to fork out the full cost of a hand set and go on pay as you go.
    HELP:mad:
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    urs wrote: »
    I just called 02 about upgrading my phone (Ive been on SIM only for 8 years.
    Their call centre did not know about the offcom ruling (or claification if you prefer). When they went off and checked, they said it didn;t apply to them, and as they were putting up pries at below inflation there is nothing s customer can do. They reiterated that even though they hadn't heard of the offcom culling it didn't apply to them.

    I called EE to see if they could confirm what it would mean if I switched to them and they said so long a their rises were not above the RPI they could increase it as often as they liked so long a they told you before hand. how many times then can you increase a tarrif over a 24 month contract before it becomes illigal?

    There is nothing in this BBC article about the customer being lumbered if the tarrif increase is below the RPI.

    I can't post the link beecause MSE thinks I'm a new user (quite offedned as I joined 6 years ago) How long is new, new for?
    :(
    I give up!

    OFcom website is on about changes in the EU that take effect in May.

    I have no idea now what my rights are or arnt as a customer. I'm beginning to think the safest thing to do is to fork out the full cost of a hand set and go on pay as you go.
    HELP:mad:

    You make it sound like it's something new, it is not, it has always been there in the T&Cs, do a search about the Orange price rises (massive thread) up until now I see no genuine debate for why the price increase is invalid (sensible logical replies please not pent up childish whinging) .
  • Silk
    Silk Posts: 4,836 Forumite
    Part of the Furniture
    urs wrote: »
    I called EE to see if they could confirm what it would mean if I switched to them and they said so long a their rises were not above the RPI they could increase it as often as they liked so long a they told you before hand. how many times then can you increase a tarrif over a 24 month contract before it becomes illigal?
    RPI is calculated over a 12 month period so the answer would be 2 if it was on the RPI limit
    It's not just about the money
  • I have just got my email this afternoon from O2 telling me I am getting a price increase:

    Important news about the price of your mobile tariff
    At O2, we want you to have the best digital experience possible. That's why we're always investing in the best technology.
    We're already making this happen. But 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 your tariff in line with RPI. This means when you get your March 2014 bill, it will be updated from £47.47 to £48.75.
    You'll also see some changes to our other charges, such as for calls and texts if you go over your monthly allowance, international calls and MMS. To see what this means for you, go to o2.co.uk/prices.

    I guess there is nothing I can do, or is there?

    I upgraded my contract in Oct 2012 from a previous contract and it runs out in October 2014
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    N345H wrote: »
    I have just got my email this afternoon from O2 telling me I am getting a price increase:




    I guess there is nothing I can do, or is there?

    I upgraded my contract in Oct 2012 from a previous contract and it runs out in October 2014

    And didn't you have a price rise about march 2012? What did you do then?
  • I took out a £16 per month sim only deal with o2 after having an expensive Virgin mobile contract at the beginning of January as i need to cut my costs.

    Will i be getting a price increase already? It will only be 3 months in to a 12 month contract!
  • DUTR
    DUTR Posts: 12,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I took out a £16 per month sim only deal with o2 after having an expensive Virgin mobile contract at the beginning of January as i need to cut my costs.

    Will i be getting a price increase already? It will only be 3 months in to a 12 month contract!

    So how is 43p/month going to detrimentally affect you to the point where you cannot function? Petrol goes up often but you don't sell your car every price increase, as mentioned it is there in the T&Cs.

    Besides that I'm sure I saw a very favourable Virgin tariff for £15 per month (even though it can increase in line with inflation).
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