O2 and Three to Hike Pay-Monthly Prices

Subscribers to pay-monthly mobile contracts with networks O2 and Three will see their bills rise this spring 

The 2.7% price increases are in line with January’s Retail Price Inflation (RPI), which means customers won’t be able to duck out of their contracts without paying early termination fees.

The price rises will apply to all O2 customers with pay-monthly contracts, including standard, SIM-only and mobile broadband tariffs, taken out since 23 January 2014. Those with O2 Refresh accounts, which split their bills into airtime and phone costs, will only see a hike on the airtime portion.

An O2 spokesperson said: “We’re currently finalising plans and will shortly be updating our customers with the annual RPI percentage adjustment.”

Three will apply its 2.7% price increase to May’s bills. It will impact all pay-monthly contracts taken out since 29 May 2015, regardless of the length of the contract and including Sim-only plans. The network will be contacting customers from March onwards to notify them of the changes.

A Three spokesperson said: "We understand that price increases can be frustrating, which is why we are adamant that our customers deserve the best mobile experience. We are building the UK's fastest 5G network and have committed to giving all new and existing Three customers access to 5G with no speed caps and at no extra cost for this service. We are also committed to providing worry-free roaming in 71 worldwide destinations, even after Brexit.”

Three recently announced that its delayed 5G network will finally launch in 65 locations across the UK by the end of this month.

Most mobile providers adjust their prices annually each spring in line with inflation. Last year subscribers to O2 and Three both saw a 2.5% price increase. This year, EE has already announced a price hike of 2.2%, in line with December’s RPI, and BT Mobile customers will see charges rise by 1.3%—below the level of inflation. 

Vodafone bases its price increases on February’s RPI, which will be announced 25 March.