Telecom firms have been banned by Ofcom from using mid-contract price rises that are linked to inflation after this was ruled to be ‘confusing’ for households
Virgin Media O2 has revealed the exact amount your mobile or broadband bill could rise by next April.
Telecom firms have been banned by Ofcom from using mid-contract price rises that are linked to inflation after this was ruled to be “confusing” for households. Instead, customers must now be told in “pounds and pence” how much their contract will rise by each year.
Virgin Media O2 used to increase prices by the Consumer Price Index (CPI) rate of inflation in December, plus 3.9% – but it has now confirmed its new pricing structure. From this January, new and re-contracting Virgin Media customers will see their prices rise by £3.50 a month, effective from each April.
O2 customers will see their airtime bill increase by £1.80 but their monthly device repayments will remain frozen at a fixed price. Mobile broadband and smart watch customers will see a price rise of 75p. But there are some customers who won’t see their bills rise at all, including customers on social tariffs and Talk Protected landline services. Pay-as-you-go customers also won’t see their prices increase.
A Virgin Media O2 spokesperson said: “From January, we’ll change how we communicate and implement price increases. All future price changes will be included in customers’ contracts in pounds and pence, giving them even more certainty about how their bills may change over the course of their contract.
“For new and re-contracting Virgin Media customers, this will be a flat increase of £3.50 a month, effective each April, while airtime price increases for O2 customers will be £1.80 a month, with device payment amounts remaining frozen.
“At less than the cost of a takeaway coffee or a sandwich, this represents excellent value for connectivity that our customers are using more than ever before, at the same time as we invest more than £5 million a day in our networks and services to give our customers the fast and reliable connectivity they increasingly rely on.”
How to cut your broadband and mobile bill
If you’re coming to the end of your contract, compare prices elsewhere to see what other deals are available. Take a look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs.
For broadband, look at your current speed and if you need this fast of a deal. You may find you’re actually paying too much right now for allowances or speeds you’re not using. If you’ve found a cheaper deal, you can switch to this if you’re out of contract.
Alternatively, you can try to haggle down your current provider – this generally has more success if you’re coming near to the end of your contract. When haggling, explain the better deals you’ve seen elsewhere then ask if the company can match or beat that price.
