According to Tech Digest, Technology Secretary Liz Kendall has intervened after O2 announced it will raise mobile bills by £2.50 per month starting in April 2026, adding £30 annually to customer costs. This increase is 40% higher than the £1.80 rise customers were informed about when signing contracts. Despite the daily impact being relatively small at around 8p, consumer groups are furious that the move undermines new pricing transparency rules. O2 claims the increase is necessary to fund network investment and is permitted under current Ofcom regulations, while noting customers can exit contracts penalty-free within 30 days. Money Saving Expert founder Martin Lewis called the move a “mockery of the regulator’s consumer protection regime,” prompting Kendall to demand Ofcom review how easily affected customers can switch providers.
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The Fine Print Problem
Here’s the thing about mid-contract price hikes – they’re basically legalized bait-and-switch. Customers sign up thinking they know what they’re getting, then get hit with increases they never properly agreed to. O2’s defense that this is “permitted under current rules” feels like they’re hiding behind technicalities rather than treating customers fairly.
And let’s talk about that “penalty-free exit” option. Sure, customers can leave within 30 days. But how many people actually notice these notifications in time? And switching providers is never as simple as they make it sound. There’s the hassle of porting numbers, potential service gaps, and the mental energy required to comparison shop. It’s a barrier that protects companies more than consumers.
Will Ofcom Actually Do Anything?
Kendall’s proposal to adopt insurance-style renewal practices is interesting. You know how insurance companies now have to offer existing customers the same deals as new ones? That could genuinely change the game in telecoms. But here’s my question: will Ofcom actually implement meaningful changes, or will this just become another review that gathers dust?
Ofcom calling the price rise “disappointing” feels weak. It’s like your parent saying they’re “disappointed” rather than actually grounding you. Without real consequences, what’s stopping other providers from following O2’s lead? They’re basically testing the waters to see how much they can get away with.
The Transparency Charade
Look, telecom companies have been playing these games for years. They create complicated pricing structures that sound transparent but leave enough wiggle room for exactly this kind of maneuver. The spirit of the rules is clearly about giving customers certainty, while O2 is exploiting the letter of those same rules.
And let’s not forget the timing – April 2026 gives them plenty of runway before customers feel the pinch. By then, will anyone even remember this controversy? Or will it just become another accepted cost of doing business with major telecom providers? I’m skeptical that without serious regulatory teeth, we’ll see any real change in how these companies operate.
