Virgin Media O2 has bowed to new Ofcom rules with changes to how it both communicates and implements price increases.
The communications company says in future any price changes that are included in a customers contract will be “specified prominently in pounds and pence”, adding that this will give customers “greater certainty” about how bills may change over the course of a contract.
Last July, Ofcom ordered telcos to tell customers upfront about any price rises that may fall during their contract in plain English. The consumer protection rules followed the growing practice of the UK’s major phone, broadband and pay-TV companies changing their contract terms to include price rises linked to future inflation rates.
“Our approach means that customers’ monthly bills are guaranteed to increase by less than the cost of a takeaway coffee or a sandwich, representing outstanding value at a time when customers are using both our fixed and mobile networks more than ever before,” said Christian Hindennach, Virgin Media O2’s Chief Commercial Officer in a blog post.
There is of course a sting in the tail with Virgin Media broadband customers receiving a flat price increase each year, effective in April, of £3.50 a month. O2 customers will see the cost of their airtime plans increase by £1.80 a month.
VMO2 says it was one of the first providers to introduce a low-cost social broadband tariff – Essential broadband – currently available for £12.50 a month.
Earlier this year we launched a new mobile social tariff, Essential Plan, which costs just £10 a month and comes with 10GB of data plus unlimited calls and texts. Available to customers in receipt of a range of benefits, it is designed to help people on low incomes stay connected. The operator says Essential Plan customers will be exempt from any price increases.
