With just 14 days to go until Santa makes his annual visit, mobile network O2 has given customers an early Christmas present – news of a 3.2% increase in line rental costs from February 2013.
The company says it’s being forced to increase prices because of rising external costs and says it has “held off for as long as possible but now need to make a change.”
The increase means customers on a £15.50 Simplicity tariff will see costs rise to £16 per month while customers on a £31.00 tariff will pay £31.99 after the change.
O2’s terms and conditions allow it make one inflation related increase per year so unhappy customers will not be able to cancel their contracts without paying a penalty charge.
Pay & Go customers, large enterprise (corporate) customers on bespoke contracts, home broadband, mobile broadband, home phone and O2 Lease customers are unaffected by the change.
Earlier this year telecoms regulator Ofcom announced plans to consult on giving how consumers better protection against unexpected price rises within fixed-term landline, broadband and mobile phone contracts.