Virgin Media O2 customers are facing a “lose-lose choice” between the highest mid-contract broadband and mobile price rises, or crippling exit fees running into hundreds of pounds, the consumer group Which? has warned.
Virgin Media and O2, which merged in 2021, are scheduled to go ahead with price rises of up to 8.8% this April – the latest retail prices index figure of 4.9%, plus an extra 3.9%.
These increases, which come on top of 17% rises a year ago, are the highest increases in percentage terms out of any of the large broadband or mobile firms this year.
Virgin broadband customers will typically see their bills rise by just above £39 a year from April, according to Which?. Customers who do not want to be hit with this price rise face exit fees of as much as £404 if they were to leave their contract 12 months early, it said.
Rivals broadband suppliers BT, EE, Sky, Three and Vodafone have all confirmed price increases this spring of between 6.7% and 7.9%, significantly less than Virgin Media O2.
Which? has warned the average O2 Sim-only mobile customer faces a £26.44 annual price rise – again the highest increase of any network in percentage terms. O2 mobile customers who took out their contracts prior to March 2021 will only see bills rise by about 5%.
Rocio Concha, director of policy and advocacy at Which?, said:“Virgin Media and O2 customers face a lose-lose choice between huge price hikes and crippling exit fees. This comes on top of up to 17% increases faced by some O2 customers last year – few would have anticipated such steep price rises when they signed up.
“Ofcom has clearly stated that the practice of inflation-linked mid-contract price rise terms can cause substantial consumer harm. Telecoms firms must do the right thing and immediately scrap these rises, rather than cynically taking the opportunity to cash in one last time at the expense of their customers before new rules take effect.”
A Virgin Media O2 spokesperson said: “2023 was a record year for traffic on our networks as customers used our mobile and broadband services more than ever. We are investing heavily to ensure we continue to provide the fast and reliable connectivity our customers rely on, and the amount we receive from price increases is greatly outweighed by the £5m we invest every single day to upgrade our networks and services to give customers a better overall experience.
“Which?’s own analysis shows that we continue to offer excellent value.”
In December, the regulator Ofcom said telecoms providers will be banned from imposing inflation-linked price rises in the middle of a contract. Instead, they will have to tell customers upfront and in “pounds and pence” about any price rises.
It intends to publish its final decision next spring with the new rules coming into effect four months later.
