Government urges Ofcom to crack down on mobile phone bills after 'disappointing' O2 price rise
The government has called on Britain's communications regulator to crack down on mobile phone bills after O2 announced a surprise mid-contract price hike.
Technology Secretary Liz Kendall told Ofcom it needed to go "further, faster" than its January decision to force network providers to clearly explain their pricing policies.
In a letter to Ofcom chief Dame Melanie Dawes, she said O2's move to change its mid-contract increase from £1.80 to £2.50 was "against the spirit of your previous changes on pricing, and all the more disappointing given the current pressures on consumers".
She pointed out that, given the increase is above the levels specified in the contract, O2 customers can leave free of charge within 30 days.
Kendall urged Ofcom to conduct a "rapid review" on how easy it is for customers to switch providers.
"If companies are determined to increase pricing, it is beholden on us to make sure that customers are able to go elsewhere as easily as possible," she wrote.
'I moved after 25 years because of price changes'
Customers were quick to share Kendall's sentiment on X.
One wrote:
"After 25+ years with O2 (I was a customer when they were 'Cellnet'!), I moved from them to
Giffgaff
yesterday because of this!"
Others posted:
"I've just cancelled sim-only deal. Only renewed it in September. My contract said it would rise £1.80.
O2 quickly changed the rules. I wasn't told they could be changing the goal posts."
"I was with O2 but have switched to Mozillion (which uses EE network).
"Was going to be paying £19 a month after the increase, now paying £4.50 for almost identical package.
"If O2 want to lose customers they're going the right way about it."
O2 defends price changes
"The changes we have announced in no way breach any regulatory rules," an O2 spokesperson told Money.
"We appreciate that price changes are never welcome, but demand for mobile connectivity is greater than ever, and any price change customers see on their bills is greatly outweighed by the £700m we invest each year into our mobile network to meet this growing demand.
"We have written directly to customers about this change, and they are able to exit without penalty if they wish."