Which one of them? Cell phone users face ‘massive price hikes’ or ‘extinction charges’, say mobile phone users

The alternative for those under contract was an exit fee, which could be “exorbitant” (Image: PA)

Which one of them? has sent a warning to UK mobile phone customers who have a “lost” choice between “huge” mid-contract price rises or “excess” termination charges from April.

Ofcom recently proposed banning the practice of central contract price increases linked to inflation. The UK communications regulator said this practice causes “substantial harm to consumers”.

However, this will not come into effect before the next wave of hikes in April.

Which one of them? Virgin Media and O2 said it expected to go ahead with price rises of up to 8.8% next April – the latest RPI figure of 4.9% plus 3.9% “arbitrary” – the highest increases in percentage terms out of any of the big firms.

The other option for those under contract was a termination fee, which could be “exorbitant”, he said.

The watchdog’s analysis suggested that a customer with Virgin Media for their broadband and O2 for their mobile phone could face a combined termination fee of as much as £692.37 if they had 12 months left on their contracts.

Since the merger of the companies, Virgin Mobile customers have been transferred to O2 and the providers have started offering bundled deals.

Which one of them? also said in its calculations that a customer on a Virgin Media contract could see their annual broadband bill rise by £39.14, or face an exit fee of £403.91 if they left their contract 12 months early.

The latest complaints figures from Ofcom showed that Virgin Media was the most complained about broadband, landline and pay TV provider and received just one star for customer service in the annual ranking of broadband provider Which?.

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Meanwhile, the average O2 sim-only mobile customer faces an annual price rise of £26.44, the highest increase of any network by percentage but slightly less than Vodafone, which has higher prices on average. to calculate the watch.

Which one of them? said the average O2 sim-only customer currently on contract pays around £25.04 a month but would face an exit fee of £288.46 if they left their contract 12 months early.

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Virgin Media and O2 said customers faced rises of “up to” 8.8%, as the additional 3.9% increase on top of RPI would not be added to the bills of “millions” of customers, and only added to price increases affect customers’ airtime. plans, not their device plans.

The average effective mobile price increase is 5%, not 8.8%, he said.

Ofcom is currently reviewing inflation-linked central contract price increases but has not yet published its final decision on its recommendations to ban the practice.

Which one of them? Director of Policy and Advocacy at Rocio Concha said: “Virgin Media and O2 customers are faced with a lost choice between massive price increases and exorbitant termination fees. This comes on top of increases of up to 17% that some O2 customers faced last year – few would have expected such price increases when they signed up.

“2023 was a record year for traffic on our networks as customers used our mobile and broadband services more than ever before.”

“Ofcom has made it clear that the practice of inflation-linked central contract price rise terms can seriously harm consumers. Telecoms firms need to do the right thing and end these increases immediately, rather than cynically take the opportunity to make one last last buck at the expense of their customers before new rules come into effect.”

A Virgin Media O2 spokesperson said: “2023 was a record year for traffic on our networks as customers used our mobile and broadband services more than ever before.

“We are investing heavily to ensure we continue to provide the fast and reliable connectivity our customers rely on, and the return on price increases far outweighs the £5 million we invest every day to upgrade our networks and services upgrade. overall better customer experience.

Our own analysis shows that we continue to offer excellent value, with cable customers paying an average of 10p a day, and mobile customers facing an effective average increase of just 5p a day, for services being use them almost. always.

“This is supported by recent independent analysis which found that the cost of telecommunications services has fallen by one-fifth since 2017, while speeds and usage have increased significantly.”