O2 dodge ofcoms new rules about tariff price rises

[Rob_B]

So, the general gist is that ofcom issues new guidance about price rises on fixed price contracts for mobile/broadband http://consumers.ofcom.org.uk/2014/0...band-contract/

So O2 now explicitly state when taking out a contract that RPI price rises will happen rather than just might happen.

I guess I can't blame them but the speed at which they've done it (the guidance starts today) is amazing, so how long until the others do the same?

[BobF64]

Can't say I'm surprised, it is the most logical step by O2, if consumers can't understand the difference between "fixed price" and "fixed duration", then things like this happen.

[Rob_B]

If advertised as £x per month, xx month contract then prices shouldn't go up during that time, this just clarifies things and makes it clear(er)

Considering most of a monthly charge is to reclaim the value of the discounted handset they gave you then rpi rises shouldn't affect things that much as they've already paid out for the phone they gave you.

[Andeh13]

If advertised as £x per month, xx month contract then prices shouldn't go up during that time, this just clarifies things and makes it clear(er)

Considering most of a monthly charge is to reclaim the value of the discounted handset they gave you then rpi rises shouldn't affect things that much as they've already paid out for the phone they gave you.

Well said!

[Chadders87]

This is why I will be switching to GiffGaff when my contract is up in xx(ish) months.

[herulach]

If advertised as £x per month, xx month contract then prices shouldn't go up during that time, this just clarifies things and makes it clear(er)

Considering most of a monthly charge is to reclaim the value of the discounted handset they gave you then rpi rises shouldn't affect things that much as they've already paid out for the phone they gave you.

Agreed, however, you're now not signing up to a an £x per month, XX month contract, you're now signing up to a contract with explicit built in price rises. Whist it isn't quite the same, you now get this message on the website before you proceed to put in any details:

On your March 2014 Airtime Plan, prices will be adjusted by 2.7% in line with the RPI rate of inflation announced in January.

From 2015, Airtime Plan prices will change every year by the RPI rate of inflation. We'll announce the change in February and it will start from your April bill. Learn more

O2 also charge you separately for the phone on a lot of contracts, and the phone part is explicitly excluded from the increase, so basically exactly what you're suggesting.

[Apex]

Dodgy if you ask me; must make you think twice about taking out a contract with O2 in future. Not that this effects me since i am on PAYG now and have been for last 10yrs.

[jim]

The problem before was that people never expected the price increase to happen. I've got no problem with this - at least it's transparent, and there's a fixed figure so there won't be some arbitrary change in price.

[BobF64]

If advertised as £x per month, xx month contract then prices shouldn't go up during that time, this just clarifies things and makes it clear(er)

Exactly, thats the problem, its incomplete advertising on one side and lack of sense on the other.

Consumers believe thats what it is, and im sure phone shop employees do nothing to correct that, where as the contract that they dont read before signing, spells it out entirely.

The networks had changes like this coming, but long term, consumers get shot in the face rather than the back.

[apmallett]

I am not against the price rise's per se, and mine came through this morning, but it is the fact that the new customer tariff won't change, it will still be the same rounded contract value. So in effect it is squeezing those who are loyal/happy with their contract. I still have fully unlimited data on O2 so have had no reason to change, but this may make me start to look around.

[Protocol2511]

Would be good if this was only for newer contracts after the changes took place rather then current customers like myself. Just seems another way to milk the cow!