O2 is set to raise the cost of its contract package by 3.2% in the New Year, placing the blame for the price increase on external costs.
The network operator is contacting customers by email and post to inform them of the price rise, which is in line with the retail price index level of inflation, which means that customers will not be able to break their contracts early.
The price increase will only affect the monthly line rental costs, the costs of sending a text, making a call and using the mobile internet will remain the same.
O2 is the latest to increase contract prices for customers, following similar increases this year from Vodafone, Three, T-Mobile and Orange. Many customers have reported the issue to communications watchdog OfCom, who have announced plans to look into the practice of raising contract costs for consumers mid contract.
“Price increases are never welcome and this is not a decision we have taken lightly,” said an spokesperson from O2. “At a time when our competitors have been raising the prices of their tariffs, we have resisted. But as external costs continue to rise, we cannot keep our pay monthly prices at the current level. For over half of our pay monthly customers, this will mean in increase on their bill of up to 58p per month.”
The price increase will affect O2 pay monthly consumer packages. Pay As You Go prices will remain at the current levels for now, as will the monthly charges for corporate customers and O2 Home and Mobile Broadband customers.