Brits have been witnessing price hikes across the board when it comes to bills but increasing phone tariffs appear to be the final straw for some customers. Customers have been left "shocked" at news of price increases to their monthly phone bills with some users threatening not to renew contracts with providers such as O2.
Texts and emails have been sent out this week from a number of phone providers notifying customers of price increases being implemented from April. The notifications say the move is in line with inflation.
In a text received by O2 customers on Wednesday (February 23), 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."
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An email, seen by the Manchester Evening News and sent from Gareth Turpin, chief commercial officer of Virgin Media O2, explained the matter further. It read: "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."
In real terms, this translates into a £12-a-month mobile plan increasing to £14.07 from April. 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. He explained: "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."
The news hasn't gone down well with customers. O2 users have shared their outrage online with one person complaining: "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?"
Another customer added: "I just got this text today, this is crazy." A third said: "I saw this and I was shocked. You best believe I am not renewing my contract with them."
The complaints continued. Someone else said: "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.” Comments continued with: "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 seven years, this is a horrendous way to treat us."
As the comments mounted up, 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."
It seems that O2 is not the only mobile service increasing customers' bills - 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%.
One EE customer tweeted that the provider 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 and iPad contracts that you will lose," they said.
And as bill increases mounted up, another social media user, who had been hit with two bill rises, said: "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." The firm 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 was reported by the Manchester Evening News as saying: "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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