"The government has asked the media regulator to revisit its rules on phone companies raising their prices in the middle of a contract, after O2 unexpectedly announced it was raising prices by 2.50 a month. Technology Secretary Liz Kendall said O2's higher than expected price increase is "disappointing given the current pressures on consumers". "I believe we need to go further, faster. I am keen that we look at in-contract price rises again," she wrote in a letter to the media regulator."
"In January, new rules came in which cracked down on phone and broadband providers increasing prices in the middle of a contract without warning. However, last week O2 announced it would be raising its monthly prices by more than originally promised. It was able to do this because the increase was not linked to inflation, and it has given customers 30 days to leave without penalty - so long as they pay off the cost of their device in full."
""A price increase equivalent to 8p per day is greatly outweighed by the 700m we invest each year into our mobile network, with UK consumers benefitting from an extremely competitive market and some of the lowest prices compared to international peers," it said."
The government requested the media regulator to revisit rules on phone companies raising prices in the middle of a contract after O2 unexpectedly announced a £2.50 monthly increase. Ofcom shared concern that customers who face price rises must be treated fairly by mobile providers. O2 informed customers directly, provided the right to exit without penalty if they pay off their device, and argued the change did not breach regulations. New rules in January cracked down on mid-contract increases tied to inflation but did not prevent all rises. Ofcom has been given until 7 November to respond to the request.
Read at www.bbc.com
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