Ofcom, the UK’s media regulator, has expressed disappointment with O2 for increasing its prices beyond what was promised to customers when they signed their phone contracts. The regulator asserts that this action contradicts the spirit of new rules intended to ensure transparency regarding price hikes. These regulations, introduced in January, prohibit phone and broadband companies from raising prices unexpectedly during a customer’s contract period.
In response, O2 maintains that it has adhered to the regulations, claiming that Ofcom’s rules do allow companies to implement annual price increases, which are necessary for network improvements. O2 asserts that it invests approximately £700 million annually in infrastructure and offers customers the flexibility to exit their contracts without penalties, provided they are aware of their obligations to pay off any linked device in full.
Consumer advocate Martin Lewis has voiced concerns about O2’s decision, suggesting it could set a precedent for other companies. He warns that customers, especially older and vulnerable individuals, may not switch providers within the 30-day window offered by O2, raising potential issues when the price adjustments take effect in April 2026.
O2 has communicated to customers via email about a £2.50 monthly increase, while initially, the advertised hike was £1.80. Ofcom has reached out to major mobile companies, reminding them of their duty to treat customers fairly and encouraging those who wish to avoid price increases to utilize their right to exit contracts without penalties.
While Ofcom’s rules were designed to prevent unexpected price increases and ensure customers understand their potential costs, they do allow for flat fee increases that are not directly tied to inflation. A telecoms analyst noted that O2 appeared to be testing the boundaries of the current regulations. Lewis has also addressed this issue to government officials, seeking further scrutiny.
Source: https://www.bbc.com/news/articles/cd047vl9ylpo?at_medium=RSS&at_campaign=rss