o2 increasing prices by RPI under contract...

nicko31

Well-known member

Jan 7, 2010

17,562

Gods country fortnightly

• Feb 24, 2016

• #1

Just got a text reminding me charges are increasing 1.3% in line with RPI inline with their T&C.

TBH it ain't going to break the bank, more irritating than anything else

Is this now becoming standard practice, seems a nice way to boost companies margins

 

M

Martlet

Well-known member

Jul 15, 2003

679

• Feb 24, 2016

• #2

Not totally - their network costs will also be rising, typically by RPI as well - plus wage inflation of their staff, which I imagine will exceed 1.3% on average. There might be a small amount which drops to the bottom line, but it's not totally cynical on their part

 

R

reigate

New member

Nov 10, 2005

921

• Feb 24, 2016

• #3

nicko31 said:

Just got a text reminding me charges are increasing 1.3% in line with RPI inline with their T&C.

TBH it ain't going to break the bank, more irritating than anything else

Is this now becoming standard practice, seems a nice way to boost companies margins

Click to expand...

I got exactly the same from EE. Think I've had it in previous years as well

 

beorhthelm

A. Virgo, Football Genius

Jul 21, 2003

35,288

• Feb 24, 2016

• #4

nicko31 said:

Is this now becoming standard practice, seems a nice way to boost companies margins

Click to expand...

or retain their current margins?

 

LamieRobertson

Not awoke

Feb 3, 2008

46,656

SHOREHAM BY SEA

• Feb 24, 2016

• #5

nicko31 said:

Just got a text reminding me charges are increasing 1.3% in line with RPI inline with their T&C.

TBH it ain't going to break the bank, more irritating than anything else

Is this now becoming standard practice, seems a nice way to boost companies margins

Click to expand...

I know...I'm just pondering what to cut out of other expenditure to deal with the 21p increase

 

studio150

Well-known member

Jul 30, 2011

29,607

On the Border

• Feb 24, 2016

• #6

I find this mid contract increase more than annoying. For virtually all fixed term contracts the price quoted is the price that applies for the duration of the contract (other than tax movements). However mobile phone companies previously have been hiding these increases away in the terms and conditions, but now include within advertising.

However the phone regulator has no control over such matters, so companies are free to increase.

i wouldn't have thought it would take much to front load inflation into the original price to enable it to be level for the contract term. No dounbt if we had negative inflation this would not have been passed over to the consumer.

 

Westdene Seagull

aka Cap'n Carl Firecrotch

NSC Patron

Oct 27, 2003

20,993

The arse end of Hangleton

• Feb 24, 2016

• #7

But the average RPI in 2015 was only 0.975% - love how these companies just make it up !

 

nicko31

Well-known member

Jan 7, 2010

17,562

Gods country fortnightly

• Feb 24, 2016

• Thread starter
• #8

What makes me laugh is I'm only 5 weeks into a contract, and that only lasts 12 months anyway yet an increase is applied on the basis of annual RPI

I guess they are within their rights but pretty sharp practice

 

Chicken Run

Member Since Jul 2003

NSC Patron

Jul 17, 2003

18,421

Valley of Hangleton

• Feb 24, 2016

• #9

48 p a month more with EE what am I going to do?

 

edna krabappel

Well-known member

NSC Patron

Jul 7, 2003

47,221

• Feb 24, 2016

• #10

That will explain the text yesterday cheerily informing me that my data allowance is, for the first time, going to be rolled over to the next month from now on. Sweetener, it seems.