MSE News: Mid-contract broadband and mobile price hikes to be reviewed by regulator

MSE_Petar

Regulator Ofcom has launched a review into mid-contract price hikes on mobile and broadband bills, amid concerns that providers aren't being clear enough about what customers can expect to pay during the full length of their contract.

Read the full story:
'Mid-contract broadband and mobile price hikes to be reviewed by regulator'

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Max68

They need to get rid of exit fees, that will shake it all up otherwise you get stuck for months in this case with a 14 odd % rise.

Anon

It is a scam and Virgin Media's new contracts have now introduced it the same as the others. Writing in their ability to increase the price mid contract, while removing the right of consumers to leave the contract due to that increase, should be illegal under consumer law, as it is not an equal relationship. No doubt they have covered themselves that they told you up front they could increase the price during the term, but anyone who signs up to a contract at for example £20 for 18 months should be able to expect to pay £20 for 18 months. It should not be allowed to go up once or twice during that time - many companies also increased contract lengths to 18 months or 24 months, which has amplified the impact of the price increase clause.

lucevdw

O2 price increase will be RPI plus 3.9% but they also say if RPI is negative 'we’ll only apply the 3.9%' like they're somehow doing us a favour.  If RPI is negative, surely there's no need for a mid-contract inflation price hike.  In fact, this policy is not only gauging and profiteering but also drives overall inflation further upwards.

I've been with O2 for years (b/c the customer service has been pretty good overall) but I'm not on a contract (pay monthly, sim only).  Wonder if it's worth trying to negotiate this with them or better to look around for a cheaper provider?

SaverRate

lucevdw said:

O2 price increase will be RPI plus 3.9% but they also say if RPI is negative 'we’ll only apply the 3.9%' like they're somehow doing us a favour.  If RPI is negative, surely there's no need for a mid-contract inflation price hike.  In fact, this policy is not only gauging and profiteering but also drives overall inflation further upwards.

I've been with O2 for years (b/c the customer service has been pretty good overall) but I'm not on a contract (pay monthly, sim only).  Wonder if it's worth trying to negotiate this with them or better to look around for a cheaper provider?

Have a look at the MSE comparison tool... https://www.moneysavingexpert.com/cheap-mobile-finder/

Skircoat

With Plusnet asked them please explain how CPI +3.9% =5.9% comes to £3.60 on a £24.99 bill. Must use different calculators than I do as I make it £1.47. Take away the VAT element and it is even worse.

southsidergs

Skircoat said:

With Plusnet asked them please explain how CPI +3.9% =5.9% comes to £3.60 on a £24.99 bill. Must use different calculators than I do as I make it £1.47. Take away the VAT element and it is even worse.

That's because the cpi published in jan that it goes by is 10.5% hence a 14.4% increase, don't know where you got your figure from

Neil_Jones

Skircoat said:

With Plusnet asked them please explain how CPI +3.9% =5.9% comes to £3.60 on a £24.99 bill. Must use different calculators than I do as I make it £1.47. Take away the VAT element and it is even worse.

Where have you got 5.9% from?  Everybody else is using 14.4%.  The calculation is right - £24.99 + 14.4% = £3.60 increase (rounded).

CPI rate isn't 2%, if hasn't been 2% for the last two and a half years or so I believe.

wilkko73

Anon said:

It is a scam and Virgin Media's new contracts have now introduced it the same as the others. Writing in their ability to increase the price mid contract, while removing the right of consumers to leave the contract due to that increase, should be illegal under consumer law, as it is not an equal relationship. No doubt they have covered themselves that they told you up front they could increase the price during the term, but anyone who signs up to a contract at for example £20 for 18 months should be able to expect to pay £20 for 18 months. It should not be allowed to go up once or twice during that time - many companies also increased contract lengths to 18 months or 24 months, which has amplified the impact of the price increase clause.

I agree,I wish it was like Tesco mobile where your bill stays the same.I don't know what I'm going to do with Virgin media,I only have broadband I was on 50mb but It was moved to 125mb over the last year or so without even asking,I even told them I didn't want a higher speed.Anyway people like me on a low speed bb with the tv or home phone component shouldn't expect to be paying a great amount for that

SaverRate

wilkko73 said:

Anon said:

It is a scam and Virgin Media's new contracts have now introduced it the same as the others. Writing in their ability to increase the price mid contract, while removing the right of consumers to leave the contract due to that increase, should be illegal under consumer law, as it is not an equal relationship. No doubt they have covered themselves that they told you up front they could increase the price during the term, but anyone who signs up to a contract at for example £20 for 18 months should be able to expect to pay £20 for 18 months. It should not be allowed to go up once or twice during that time - many companies also increased contract lengths to 18 months or 24 months, which has amplified the impact of the price increase clause.

I agree,I wish it was like Tesco mobile where your bill stays the same.I don't know what I'm going to do with Virgin media,I only have broadband I was on 50mb but It was moved to 125mb over the last year or so without even asking,I even told them I didn't want a higher speed.Anyway people like me on a low speed bb with the tv or home phone component shouldn't expect to be paying a great amount for that

If you want to keep Virgin get your price down as low as possible ready for the April 2024 increase. 

If your in contract currently then you can negotiate with them to avoid the price increase. They may either put you on a new contract or discount your current one. 

Alternatively move provider when you can cancel your Virgin contract for free. 

k18dan

Why are mid-contract price rises allowed at all?

When I sign up to a service/subscription for 12/18/24 months I want to know exactly how much its going to cost each month before I decide if I can afford it. How are you meant to budget if the price can change mid-contract?