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#Mobile

O2 hikes charges by 25% for existing customers

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UK operator O2 is whacking up its charges by as much as 25 percent for existing customers with monthly contract rates going up by 2.7 percent increasing the tariffs from £37 to £38 a month starting this March just days after a guidance from Ofcom that suggested telecoms operators to refrain from nasty surprises of this sort.

The company announced a hike in call charges from 35p to 40p a minute, texting charges from 12p to 15p and cost of a picture message from 35p to 40p. People signing monthly contract with O2 from now, will also get to see their costs rise in the month of March.

It seems that the headline rise in charges of contract is along the lines of RPI inflation as O2 said in a statement: “With the current RPI rate of inflation at 2.7%, the cost of everything is going up. As a result, we’re adjusting the price of tariffs in line with RPI.”

O2 also states the other increases in cost of text and picture messaging are to support the future investments that will ensure best services for the customers.

O2 has increased the charges and updated the monthly contract terms and conditions just days after Ofcom published the new guidance to prevent mid-contract bill hikes. According to the guidance, consumers and small businesses can leave their contract penalty-free, if their mobile operator increased the prices mid-contract. But, O2 has clearly insisted that this move did not contradict Ofcom’s recent guidance.