"Mobile phone companies could be making up to £90 million a year by legally using "hidden" contract clauses to raise the cost of what should be fixed-rate tariffs, the consumer group Which? has warned.

The organisation has filed an official complaint to regulator Ofcom after an investigation found that 70% of people on fixed contracts did not know that network providers could increase prices during the lifetime of their contract.

It has launched a campaign, Fixed Means Fixed, calling for an end to price increases on mobile phone contracts, arguing they should stay the same price from start to finish of the contract."

Full story here:http://money.aol.co.uk/2012/07/16/warning-on-90m-mobile-contracts/

Hasn't BT always done this?  :-/

I don't think it is just mobile companies that practice this wheeze.

sherbert wrote on Jul 16^th, 2012 at 5:39pm:

Hasn't BT always done this?  :-/ I don't think it is just mobile companies that practice this wheeze.

No. BT doesnt ever claim the price will not go up (unless they say something like we want increase our prices again to 2012) and will  let you know about a change to the price or the terms and conditions of a service which is to your material disadvantage,at least a month before hand and you dont have to normally pay a charge if you decide to end that service early.

The difference is Mobile companies use to do something similar but in the last three recent increases which were made by Orange, T-Mob and lastly 3 they invoked "hidden" contract clauses to raise the cost of what people thought/ or had been led to believe were fixed-rate tariffs.

Its also been suggested that a cap on charges for ending mobile contracts be introduced – as Ofcom introduced for landlines in 2010.  Because as your no doubt aware currently consumers must pay the full amount left on their mobile contract if they want to leave early.  The idea of the cap being it would limit the sometimes large cost of leaving a contract that is no longer suitable or competitive."

bigjohn wrote on Jul 17^th, 2012 at 12:57am:

sherbert wrote on Jul 16th, 2012 at 5:39pm: Hasn't BT always done this?  :-/ I don't think it is just mobile companies that practice this wheeze. No. BT doesnt ever claim the price will not go up (unless they say something like we want increase our prices again to 2012) and will  let you know about a change to the price or the terms and conditions of a service which is to your material disadvantage,at least a month before hand and you dont have to normally pay a charge if you decide to end that service early. The difference is Mobile companies use to do something similar but in the last three recent increases which were made by Orange, T-Mob and lastly 3 they invoked "hidden" contract clauses to raise the cost of what people thought/ or had been led to believe were fixed-rate tariffs. Its also been suggested that a cap on charges for ending mobile contracts be introduced – as Ofcom introduced for landlines in 2010.  Because as your no doubt aware currently consumers must pay the full amount left on their mobile contract if they want to leave early.  The idea of the cap being it would limit the sometimes large cost of leaving a contract that is no longer suitable or competitive."

Point taken :-[