Saturday, 1 March 2014

Mobile Phone Plan Price Increase

I am disgusted by the move of the many mobile phone companies in the UK to increase their prices during mid-contract. While I understand that mobile phone companies have struggled to make even more profit after the ruling by Ofcom and the EU Competition Commissioner to reduce roaming charges. The ruling by the EU Competition Commissioner to cap all incoming and outgoing roaming charges were well received by customers within the EU because it means that customers will not be charged at an astronomical price when they returned to their home country. The downside to this is that mobile companies no longer have the leverage to charge customers at a higher price. It cuts into their profit level.

Apart from that, the ruling from the recent report from Ofcom stated that mobile networks must notify customers if they want to increase customer's tariff during mid-contract. This comes as a good moves for customers but there are already drawbacks. One of harem would be the move by mobile network O2 in the Uk. They have pre-empt the decision by Ofcom by inserting exclusion clauses to prevent O2 customers from cancelling their contract even though there is a price increase during mid-term of he heir contract. The only way which customers could cancel their contract is to pay an Early Termination Fee.

On this note, O2's desire to increase customer's price plan during mid-contract is far from over. Most of the O2 customers have not received any news about the increase of their price plan via post or via text. The only thing which O2 did was to post a small article on their website indicating that there will be a price increase. What is going on with O2? I feel that O2 customers have been short-changed in this situation.

The bad news is that O2 is not the only mobile phone company in this bandwagon.other mobile phone companies eg: Vodafone, EE, T-Mobile, Orange and Tesco Mobile have indicated that they will be increasing their price tariff during a customer's contractual duration. So far, only EE have decided to inform customers of their intention to increase customer's tariffs via text messages, post and by giving customers a telephone call.

As for me, I think these companies are highly unethical. I will be using 3UK when my contract with O2 expire. So long, O2.

No comments: