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03/01/2013
Ofcom Aim To Tackle Mobile Contract Price Hikes
Mobile phone contract holders could be allowed to cancel their contract without penalty if the provider changes the terms of their deal, under proposals by Ofcom in an effort to clamp down on companies that raise bills mid-contract.
This would protect customers from "unfair surprises", Ofcom said, whose announcement comes days after O2 said it would be increasing monthly mobile bills by 3.2% for 7 million people.
The consumer group Which? claimed this would result in O2's customers paying almost £45m more a year, and that in total UK consumers face a £150m-a-year hit from rising prices.
Ofcom has been looking at how to protect customers on "fixed" mobile phone contracts from unexpected price rises, and has previously said the existing rules potentially "harm" consumers.
In November 2012, Vodafone increased bills for about 10 million customers by up to £1.55 a month. The increase was branded "shocking" by Which? and came a year after the company "simplified" customer bills by rounding them up to the nearest 50p.
The November Vodafone increase followed on from rises imposed by Orange, T-Mobile and Three.
(H/GK)
This would protect customers from "unfair surprises", Ofcom said, whose announcement comes days after O2 said it would be increasing monthly mobile bills by 3.2% for 7 million people.
The consumer group Which? claimed this would result in O2's customers paying almost £45m more a year, and that in total UK consumers face a £150m-a-year hit from rising prices.
Ofcom has been looking at how to protect customers on "fixed" mobile phone contracts from unexpected price rises, and has previously said the existing rules potentially "harm" consumers.
In November 2012, Vodafone increased bills for about 10 million customers by up to £1.55 a month. The increase was branded "shocking" by Which? and came a year after the company "simplified" customer bills by rounding them up to the nearest 50p.
The November Vodafone increase followed on from rises imposed by Orange, T-Mobile and Three.
(H/GK)
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