See http://www.o2.co.uk/desktop/prices

They have  found a way to dodge Ofcom's latest contract price-rise guidelines by issuing an update to their  terms and conditions.

See: http://thenextweb.com/uk/2014/01/23/o2-changes-terms-conditions-circumvent-new-ofcom-rules-let-leave-mid-contract/#!s3Abg

bigjohn wrote on Jan 23^rd, 2014 at 5:53pm:

See: http://thenextweb.com/uk/2014/01/23/o2-changes-terms-conditions-circumvent-new-ofcom-rules-let-leave-mid-contract/#!s3Abg

Quote:

Ofcom’s new guidance has made it easier for subscribers to exit their contract if their carrier chooses to increase the subscription price agreed upon at the start date. By being upfront about its price hikes in the beginning, O2 has successfully circumvented the new guidance.

Is it really that easy for the telcos to get around the new regulation?

Dave,

Most likely as Ofcom has hardly any teeth it would seem!

:o

Dave wrote on Jan 23^rd, 2014 at 6:35pm:

Is it really that easy for the telcos to get around the new regulation?

Apparently so according to o2.

"Ofcom's Updated Guidance clarifies that consumers will be free to enter a contract which includes a price change each year in line with a measure of inflation like RPI - provided the relevant price term is clear and prominent so that the customer clearly agrees to this at the outset. Where this is the case a customer will not be able to end the contract when a price change is applied."

http://www.theinquirer.net/inquirer/news/2324728/o2-dodges-ofcoms-contract-price-hike-guidelines

Fortunately Tesco Mobile who use the O2 Network operate a no price rise policy during term of contract.

bigjohn wrote on Jan 23^rd, 2014 at 7:49pm:

Dave wrote on Jan 23rd, 2014 at 6:35pm: Is it really that easy for the telcos to get around the new regulation? Apparently so according to o2. "Ofcom's Updated Guidance clarifies that consumers will be free to enter a contract which includes a price change each year in line with a measure of inflation like RPI - provided the relevant price term is clear and prominent so that the customer clearly agrees to this at the outset. Where this is the case a customer will not be able to end the contract when a price change is applied." http://www.theinquirer.net/inquirer/news/2324728/o2-dodges-ofcoms-contract-price-hike-guidelines Fortunately Tesco Mobile who use the O2 Network operate a no price rise policy during term of contract.

But has O2 really got around the new rules?

The original problem and reason for issuing Guidance on GC9.6 was because telcos were increasing the price of services without allowing consumers to exit and without giving consumers clear prior notification of the level of any hikes.

What O2 has done is give notification of future price rises at point of sale. It is still limited in the degree to which it can increase prices without giving consumers a right to exit without penalty — this limit being specified in the contract terms.