If you signed up to a Pay Monthly airtime tariff (including O2 Refresh Airtime Plans) prior to the 28th February, you'll see a 2.7% adjustment to your tariff/airtime plan charges on your March bill. This increase is in line with the Retail Price Index (RPI) rate of inflation announced on 14 January 2014.
If you joined or upgraded before 23rd January 2014, you would have received a notification from us advising of this increase. If you joined or upgraded post 23rd January 2014, and prior to the 28th February, you will have been told about the increase at the point of joining/upgrading.
Effective from 28th February, we also made changes to some of our other charges, such as calls and texts when you go over your monthly allowance, and charges for additional services like international calls and MMS. These changes do not apply to business tariffs. Please see our updated price list and tariff terms for our latest prices if you think you're likely to use these services.
We want to give our customers the best services for the best value and that's something we will continue doing.
We're completely modernising our entire network and investing £1.5m every day on replacing and upgrading equipment to ensure our 2G and 3G networks continue to deliver the best experience for our customers. In just 5 months our 4G network is live in 13 cities and over 120 surrounding towns giving access to over 18 million people in the UK, that's 30% of the UK population.
But due to RPI the cost of everything is going up. As a result, we've adjusted the price of our tariffs in line with RPI.
Ofcom's guidance on "fixed means fixed" is only applicable to contracts made on or after the 23rd January 2014 and does not apply to contracts that were entered into before that date. For customers who joined or upgraded before this date, our terms and conditions at the time you signed up stated that we are entitled to increase your monthly subscription charge by no more than RPI and no more often than every 12 months and are compliant with the body of general consumer protection law. Our advertising has also said 'tariff prices may go up' since January 2013.
As you would have been told when you signed up, your monthly subscription charge is going to be adjusted by the RPI rate as at the date we announced the price rise on 23rd January 2014, which was 2.7%.
From 2015, pay monthly tariffs (including Airtime Plans on O2 Refresh and SIM only tariffs) will also be subject to an annual adjustment every year on your April bill by the Retail Price Index (RPI) rate of inflation announced in the preceding February.O2 Refresh:
If you're on O2 Refresh, your Airtime Plan is subject to RPI, but not your Phone Plan. That's because your phone is on a credit agreement, and not part of your monthly airtime subscription charge.
For example, if you're on a £17 O2 Refresh Airtime Plan, the increase of 2.7% will result in a new monthly Airtime Plan cost of £17.45.Non O2 Refresh:
If you're on a SIMO tariff, or a non O2 Refresh Pay Monthly tariff, RPI is applied to your monthly subscription charge (your tariff amount). For example, if you're on a £27 per month tariff, the increase of 2.7% will result in a new monthly subscription charge of £27.72.
You'll see the increase for the first time on your March bill. You can work out the increase and your new tariff price with our handy calculator.
Yes. If you joined or upgraded on or after 23 January, this price rise was specifically set out in our terms and conditions. Whether you're brand new or you've been with us a while, Pay Monthly and Business customers will see their monthly subscription charges increase on their March bill.
The price you signed up to will remain the same for a minimum of 12 months. We are not contractually entitled to increase your monthly subscription charge again for at least 12 months.
As you will have been told when you signed up and as set out in your terms & conditions, from 2015 you can expect an annual adjustment to your tariff on your April bill in line with the Retail Price Index announced in the preceding February.
Ofcom published guidance which took effect for contracts formed/made on or after 23rd Jan setting out their interpretation of General Condition 9.6 which is that they consider a mid-contract price rise to be a materially detrimental change to a customer's fixed term contract which should entitle them to terminate that contract without penalty. That guidance does not apply to contracts made/signed pre-23rd January 2014. They also revised their guidance and published an Annex to it on 22nd Jan 2014 which sets out that a clear price rise in line with inflation will not be a materially detrimental change to terms which would entitle a customer to terminate. Our contracts from 23rd January are in line with this revised guidance. Price rises applied on contracts made before this date are not covered by the guidance and, as set out above, our previous terms and conditions stated that we are entitled to increase your monthly subscription charge by no more than RPI and no more often than every 12 months.
For more information please see Ofcom's updated guidance on material detriment in relation to price rises in fixed term contracts:
On the 28th February some prices increased for out-of-bundle calls/messages that are chargeable once you have used up your free tariff allowance.
|Before 28th Feb||From 28th Feb|
|UK Voice Call||35p||40p*|
|UK Text Message||12p||15p|
* minute minimum charges apply
We have also made some changes to charges for additional services like international calls and MMS
|Before 28th Feb||From 28th Feb|
|MMS (UK or International)||35p per message||40p per message|
|International calls (price shown is per minute)||Before 28th Feb||From 28th Feb|
|Turkey, Albania, Serbia, Croatia, Bosnia, Macedonia, Montenegro, Algeria, Libya, Morocco, Tunisia||50p||80p|
|USA / Canada||40p||60p|
|Australia, Christmas Island, Cocos Islands, Hong Kong, Malaysia, New Zealand, Singapore, South Africa, Tokelau||60p||80p|
|Zone 6 - Rest of World||£1.00||£1.20|
From 28th February Minute Minimum Charges apply for all International calls.
Inflation (one measure of which is the Retail Price Index) has an impact on the cost of bringing you the best technology. Therefore, we're adjusting our Pay Monthly tariffs accordingly, so we can continue to invest in our network and in the products and services we bring you. Remember, O2 offers you so much more than just great value tariffs, with benefits such as:
RPI is a widely recognised measure of the general level of inflation and has been historically used across a number of industries as the guide to calculate price rises in line with inflation.
An increase of this kind does not entitle you to end your agreement mid-contract. As set out above, our terms for customers signing up both pre- and post- 23rd January allow us to apply a price increase to reflect RPI.
If you joined or upgraded on or after 23 January, the price rise and timing was explicitly set out in our terms and conditions.
If you joined or upgraded before this date, the fact that monthly subscription charges could be subject to change in line with RPI was set out in our terms, and also highlighted in the Key Points Summary given to you when you joined or upgraded. You also will have or will be told directly by us about the price increase as well as what it means for your bill with 30 days' notice.
If you're on O2 Refresh, your Airtime Plan is subject to RPI, but Phone Plan will never be subject to the RPI inflation adjustment. That's because your phone is on a 0% interest credit agreement, and is not part of your monthly airtime subscription charge.
For example, if you're on a £17 O2 Refresh Airtime Plan, the increase of 2.7% will result in a new monthly Airtime Plan cost of £17.46, meaning a smaller increase than traditional tariffs previously taken from O2 direct or one of its partners like Carphone Warehouse.