How you could switch and save to avoid the O2 price hikes

Which? is urging O2 customers affected by new price hikes to vote with their feet and switch, after the company confirmed it would raise prices by more than it had originally stated.

The network plans to increase prices for millions of customers by £2.50 a month instead of £1.80, as it originally told customers – a rise of almost 40%.

The move comes despite new rules introduced in January to prevent phone and broadband firms from hiking prices mid-contract without clear warning. 

While it could be seen as a blow for customers, it also represents an opportunity – once notified of the increase there’s a 30-day window in which you can switch penalty-free, and as we show below, this could result in a significant monthly saving as well as avoiding the hikes.

Read our guide to the  to find a provider that won't charge you hefty annual increases

Who is affected by the new O2 price rises?

The new price increase applies to Pay Monthly mobile customers, raising customers' Sim prices by £2.50 a month every April, higher than the previously advertised £1.80. 

It doesn't apply to anyone on a social tariff, or to data-only deals for Smartwatch and mobile broadband, which stay at 75p a month and out-of-bundle charges also remain the same – a 5% increase each April. 

If you're an O2 customer and unhappy about this increase, there is currently a 30-day window to switch from O2 penalty-free.  

Sim-only customers can switch easily to another provider and keep their number

Customers with a phone and Sim contract can either pay off the remaining balance for their device, or continue to pay for it separately while choosing a different Sim deal with a new provider

How easy is it to switch from O2?

Switching from O2 is easy – you don’t even need to contact them or worry about getting stuck in long queues to get through to customer service.

All you need is a porting authorisation code (PAC), which you get with a text message. To switch and keep the same mobile number, text PAC to 65075. You should be sent a text within one minute, and the PAC lasts for 30 days. 

Three great Sim-only alternatives to O2

O2 customers could make significant savings by switching. We’ve picked three deals from virtual networks that use O2’s infrastructure for a seamless switch – your signal quality should be the same. Plus as our regular survey consistently shows, many smaller providers offer a better service as well as better value for money.

Sky Mobile – 10GB of data for £6 per month

You’ll need to sign up to a 12 month contract with Sky for this deal, but it’s excellent value, and you can store unused data in a ‘piggybank’ to roll to the next month.

If you’re happy signing up for a 24-month contract, this is a good value deal with Tesco. Plus if you have a Tesco clubcard, prices are frozen for the duration of the contract.

Giffgaff includes up to 5GB of free EU roaming with its deals. This flexible 18-month contract means the price won't increase, but you can change how much data you receive, and therefore lower the price, if you wish to.

If you’re willing to try a different network, you could get even more value for money. See our expert’s pick of the 

Ofcom and Which? call for greater pricing transparency

Ofcom’s rules require networks to tell customers exactly how much their bills will rise – 'in pounds and pence' – before they sign up. However, the rules only prohibit mid-contract increases that are linked to inflation.

In response to O2’s recent increase, Ofcom wrote to the major mobile companies reminding them of their obligations to treat customers fairly. It said 'We are disappointed by O2’s decision. We encourage any customer who wants to avoid these price rises to exercise their right to exit without penalty and sign up to a new deal.'

O2 has said the changes it announced to customers on Wednesday 'do not prevent companies from increasing annual price changes – for example, to invest in improving networks'.

'A price increase equivalent to 8p per day is greatly outweighed by the £700m we invest each year into our mobile network, with UK consumers benefiting from an extremely competitive market and some of the lowest prices compared to international peers.

'We appreciate that price changes are never welcome, but we have been fully transparent with our customers about this change, writing directly to them and providing the right to exit without penalty if they wish.'

Rocio Concha, Which? director of policy and advocacy, said:

'This cynical move from O2 goes against the spirit of the rules and risks putting a significant dent in the finances of people who may already be struggling with cost-of-living pressures.

'This risks creating the impression that operators can play fast and loose with Ofcom's rules and get away with it. The regulator must act urgently to ensure the system it has put in place is fit for purpose and can make telecoms pricing fair and transparent.

'O2 customers facing this price increase should look to switch, as Which? research shows they could be getting better value and customer service elsewhere.'

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source https://www.which.co.uk/news/article/customers-urged-to-avoid-o2-price-hike-aTvDp6B9LARz