Millions of mobile phone customers will see their bills jump from April.
EE is the latest mobile phone provider to announce price hikes, following in the footsteps of O2 and Virgin Mobile. Across the three networks, some pay-monthly customers face a price increase of as much as around £50.
The price rises will come into force on April 1 but exactly by how much will depend on what network you are with, the type of contract you have and when you joined. Unfortunately, inflation-based price rises are often built into the terms and conditions of the contract you sign with your provider.
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USwitch explained your rights and what you can do to make bills more affordable when you are hit with unexpected hikes for your mobile phone contract.
What should I do if I'm hit by a price rise?
You might be able to leave your contract free of charge, but it depends on the tariff you want to move to. Most networks are allowed to rise the price of its monthly deals by the rate of inflation, plus a set additional annual amount.
They can legally do this because they mention it in your contract terms when you sign up. That means that you can’t simply cancel your contract without paying an early exit fee.
However, if your contract is finished, you will be free to switch providers or ask for a better offer from your current network. Some providers do allow you to leave your contract for another deal free-of-charge. Plus, several mobile providers recently agreed to waive early exit fees for customers who want to move onto a cheaper tariff with them.
What if I think I’m being ripped off?
Under Ofcom rules, you can quit without paying a penny if you can prove “material detriment.”
Ofcom says it is, “likely to treat in-term increases to the core subscription price agreed at the point of sale as meeting this material detriment requirement and giving rise to the right of withdrawal". Unfortunately, inflation linked rises are hard to prove as causing material detriment.
Should I switch to pay-as-you-go?
If you’re a light smartphone user, then pay as you go may be a decent option for escaping the vagaries of unexpected price rises. But one-month SIM only deals, while susceptible to price rises, are a better bet. 30-day deals mean easily switching if you’re unhappy, with the added bonus of knowing your exact allowance each month.
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