Why are all mobile contracts increasing 3.9% + CPI

HyperSpace88

I have checked various mobile phone companies. They are all increasing their price by CPI + 3.9%. 

CPI = inflation. So why increase it at above inflation rates?

Is n't anti-competitive if they are all increasing by the prices at the same level. Is this like a cartel?

Neil_Jones

HyperSpace88 said:

I have checked various mobile phone companies. They are all increasing their price by CPI + 3.9%. 

CPI = inflation. So why increase it at above inflation rates?

Is n't anti-competitive if they are all increasing by the prices at the same level. Is this like a cartel?

And you've only just noticed?

This has been the case for years.

The broadband/landline companies have only just caught up.

Practice might be outlawed in its current state by the end of the year.

400ixl

They all use similar as that is what they are allowed to do by the regulator. Nothing like a cartel.

Newbie_John

Because they can. Definitely loophole and needs to be fixed by gov. I've fixed for 2 years with my internet provider last Feb for £20 a month, 2 months later I was paying like £24, now £27.. as soon as I get to Feb next year I'm out.

It is very annoying and doesn't make me want to sign up to anything for over a year. Sign up in April to a set amount, the next year go elsewhere.

But there are certain providers like Lebara that don't do it - and that's something I will heavily consider when the existing contract ends.

Beeboo23

Whenever I get the letter saying it’s going up I ring and say I’m leaving as I’ve found a better deal and they always drop the price. I started out paying £25pm with virgin media. A few years down the line I’m now paying £11pm for the same service. I couldn’t believe it was that cheap. There seems to be no logic to the prices. Should say that we just have internet with them and nothing else.