Overview
- Technology Secretary Liz Kendall has asked Ofcom to revisit its rules on in-contract price rises, with a formal response due by 7 November.
- Ofcom said O2’s decision goes against the spirit of its rules and wrote to major mobile firms reminding them to treat customers fairly and highlighting penalty-free exit rights.
- O2 maintains it has been transparent and within the rules, offering customers 30 days to leave without penalty if they keep paying any device plan, and describing the rise as roughly 8p per day alongside £700 million in yearly network investment.
- Rules introduced in January ban inflation-linked mid-contract increases and require any rises to be stated upfront in pounds and pence, which O2 argues it has complied with because its hike is not tied to inflation.
- Consumer groups and analysts criticised O2’s move and urged tougher regulation, including an outright ban on mid-contract price hikes, while advising customers to consider switching if unhappy.