It seems like the rising cost of living is just never ending and now phone bills are being hit with price increases. Customers are ‘shocked’ at recent price increases to their monthly phone bill they are facing by big providers such as O2.
People have been receiving texts and e-mails this week from their phone providers notifying them of increases which companies are implementing in line with inflation which will affect customers as of April.
READ MORE: EE customers outraged as they are sent text messages confirming price rises
In a text received by O2 customers today, the company said: “Hello. From April 2023 the monthly price of your calls, texts and data will rise by the 13.4% RPI rate of inflation plus 3.9% as set out in your terms.”
In an e-mail explaining the matter further, Gareth Turpin, Chief Commercial Officer of Virgin Media O2 said: “I wanted to write to you personally to let you know that the price of your monthly O2 mobile plan is changing.
“Each year, the official Retail Price Index (RPI) inflation figures are announced in February. We then adjust your mobile plan based on these figures, as set out in your O2 contract.
“The change means that from April 2023 the price of your monthly mobile plan (that’s the cost of your inclusive minutes, texts and data) will rise in line with the 13.4% Retail Price Index (RPI) rate of inflation, plus an additional 3.9% as set out in your terms.”
For example, if your mobile plan is £12 a month, from April you will be paying £14.07. If you pay £25 a month, this will increase to £29.32.
Mr Turpin has said the increases in costs of running O2 due to the energy crisis is a large factor in increased mobile plans: “As you can probably imagine, we are facing very substantial increases in the costs associated with running our network and supporting our customers.
“These include the rising costs of energy, as well as the investment required to support the growing demand on our network.
“Customer demand for data has almost doubled in the last three years, so we are investing to increase network capacity.”
O2 customers have shared their outrage online at the new charges they face in their monthly bills.
Twitter user Stickysimba said: “Ain't no way O2 are trying to say phone bills across the board are going up 13.4%? because of inflation loooool? did cost of giving me minutes and data go up by 13% also? did they increase labour costs by 13% or?”
Zoe replied saying: “I just got this text today, this is crazy.”
O2 customer Kimberley said: “I saw this and I was shocked. You best believe I am not renewing my contract with them.”
Francesca tweeted: “What's the point of agreeing to a set payment plan @O2, if it can be increased whenever providers choose? We choose the plan we can afford or what's the point?
“For providers to suddenly boost the cost significantly when basics are already a struggle, is just plain greed,” she said.
Judy Gilfoy wrote: “When people are struggling with price increases across the board they think it acceptable to apply an increase of over 17%. Money grabbing at its finest. Customers will be voting with their feet.”
Kirsite has called the move by O2 a “p***take” while Molli Leach says, “We are in the middle of a cost of living crisis and my phone bill is being raised by 17.3%, pushing it to well beyond what I can afford to pay. I’ve been with this company for 7 years, this is a horrendous way to treat us.”
O2 responded to users on Twitter saying: “Hello, we recognise price changes are never welcome, and always balance keeping our prices competitive with the need to continue investing. On O2 Refresh, we only apply the price change to the airtime part of the bill.”
However, O2 is not the only mobile service increasing customers' bills, as BT and EE are also raising their costs. Vodafone will also increase its monthly charge based on the CPI rate while Virgin Media customers will see an average rise of 13.8 per cent.
Chris Hall tweeted that EE will now be missing out on an entire family worth of contracts since upping its bills: “A 14.4% Price increase mid contract by @ee, after 20+ years with them from one2one, T-Mobile and EE this will be my last contract.
“Just because you can raise prices doesn’t mean you have to. That’s an entire family of phones & iPad contracts that you will lose,” he said.
Malaki got hit with two bill rises saying: “Just received two emails. From EE and BT. Both are increasing their charges as per inflation. It’s just relentless isn’t it? Price increases everywhere in life.”
Replying to one customer on Twitter, EE wrote: "CPI+3.9% reflects the level of investment we need to make within our business to continue our major investments in networks and service, while also protecting vulnerable customers suffering from financial hardship or digital exclusion."
It added: "Many providers will change their prices at any time during customers’ contracts with them. We have been upfront about our price changes when customers agreed to their contract, and we are using CPI as a measure for these increases."
A spokesperson for BT told the Manchester Evening News: “We understand that price rises are never wanted nor welcomed, but recognise them as a necessary thing to do given the rising costs our business faces. This year’s increase, of just above £1 per week for the average customer receiving the rise, reflects incredible value given the cost increases we're facing, the considerable investments we're making into our network, while also protecting vulnerable customers suffering from financial hardship or digital exclusion through our market leading social tariffs.
"Any customer worried about paying their bills should contact us and we will help find a solution which works for them.”
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