The two price hikes will go into effect April 1, 2022 – but exactly how much will be added to your individual bill will depend on your plan and network
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O2 and Virgin Mobile customers will see their bills rise to £48 a year as the cost of living crisis continues to squeeze households.
Both networks, merged last year as part of the £31 billion deal, which will raise prices for some paying customers by up to 11.7%.
This is calculated based on the retail price index (RPI) ratio of inflationary – now 7.8% – plus 3.9%.
The price increase will go into effect April 1, 2022 – but exactly how much will be added to your bill will depend on the network you’re on.
It also varies depending on the type of contract you’re on and when you joined O2 or Virgin.
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An O2 spokesperson said: “We recognize that price changes are never welcome, and have always balanced keeping prices competitive with the need to continue to invest in the services our customers use. and favorite.
“For most customers, the price increase only applies to the airtime portion of their bill, and our most popular rates start from as little as 33p/day for super-fast data with minutes and unlimited messaging, our customers get incredible value and extra perks like Priority. ”
O2 price increase – how does it affect you
O2 customers who join after 25 March last year will face a full price increase of 11.7% – plus £48 a year to your bill.
But if you join before March 25 of last year, your price gains will be capped at RPI inflation, which is 7.8%.
Customers who are on O2 Refresh rates – where you have separate device and airtime bills – will only see the increment added to the airtime portion of their plan.
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To give you an example of what it means in practice, the most expensive iPhone Pro Max 5G with unlimited data charges on a 24-month contract costs £89.75 a month.
On this bill, £35 is the airtime portion, which would increase by £4.01 a month – or £48.12 a year – matching an 11.7% increase.
O2 told The Mirror that their customers have no right to cancel due to this price change, as it was all outlined for them at the time of sale.
Virgin Mobile price hike – how does it affect you
Each Virgin Mobile customer will see their bill increase in proportion to the full 11.7% increase – regardless of when they signed up.
Again, it will only affect your airtime rates – your device plan won’t be affected.
To see how it will affect you, someone on a £7 a month airtime rate will be charged an extra 82p per month.
This works out to around £9.84 annually.
Virgin Mobile told us it wrote to customers in January to warn them about the price increase.
This was a change to their T&C and thus gave them the right to exit without penalty.
How to cut your phone bill
If you are out of contract, the first thing you should do is compare phone deals to see if you’re getting the best deal.
If you find a better deal and you’re out of contract, you’ll be able to switch providers for free.
But if you’re still locked into a service or you don’t want to leave your current provider, you can try haggling.
Haggling is never guaranteed to always work, but if you do, you can potentially save a lot.
Start by calling your current mobile carrier’s customer service center, then give them the details of the cheaper deal you’ve found – and ask them if can match that agreement.
If they say they can’t match it, you can try telling them you’re thinking of disconnecting to see if that makes any difference.
Those who still have a contract and want to leave should also check how much it costs them to leave early, as you can still save money if the deal you’ve found elsewhere is a lot cheaper.
For example, if it costs you £50 to leave your current provider, but a new deal will save you £400 a year, it would be worth paying the exit fee.
Ernest Doku, telecommunications specialist at Uswitch.com, said: “The idea that bills for both Virgin Mobile and O2 are up 11.7% shows the absurdity of linking contract price increases to inflation. broadcast.
“Both networks calculate a price increase for most of their customers by adding a 3.9% to the RPI inflation measure, revealed today to be a staggering 7.8%.
“These mid-contract hikes are written into the customer’s contract, but no one who signed up for their deal 12 months ago could have predicted what their increase would be.”
https://www.mirror.co.uk/money/millions-o2-virgin-media-customers-26247373 Millions of O2 and Virgin Mobile customers will be affected by price hike of up to £48