{"id":24629,"date":"2020-11-03T16:45:43","date_gmt":"2020-11-03T16:45:43","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=24629"},"modified":"2020-11-04T07:11:41","modified_gmt":"2020-11-04T07:11:41","slug":"three-uk-and-vodafone-adopt-inflation-busting-price-hikes","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/11\/three-uk-and-vodafone-adopt-inflation-busting-price-hikes.html","title":{"rendered":"Three UK and Vodafone Adopt Inflation Busting Price Hikes UPDATE"},"content":{"rendered":"

Mobile operators Three UK<\/a> and Vodafone<\/a> appear to be taking a leaf out of BT<\/a>’s (including EE<\/a> and Plusnet<\/a>’s) book by becoming the latest telecoms operators to announce annual price hikes that will go beyond their usual RPI or CPI (inflation) linked increases. But with COVID-19 triggering another lockdown their timing couldn’t be worse.<\/p>\n

We start with Three UK<\/a>, which until recently had opted to increase their monthly prices each May by an amount up to the January Retail Price Index<\/strong> (RPI), which is a rate of inflation and was last set at 2.7%. But customers who joined the operator after 29th October<\/strong> will find that they have abandoned this approach and are instead adopting a flat annual increase of 4.5%, which is to be applied each April (here<\/a>).<\/p>\n

The move comes shortly after the operator scrapped their popular “Go Binge<\/em>” service from new 4G<\/a> and 5G<\/a> based mobile plans, which previously gave customers access to unlimited data (mobile broadband) when streaming from popular video, music and social media sites (here<\/a>).<\/p>\n

As usual this change won’t affect existing customers, at least not until it’s time to re-contract or upgrade again. Sadly, Vodafone<\/a> also seem to have a similar plan.<\/p>\n

Vodafone’s Price Hike<\/strong><\/span><\/h3>\n

Vodafone<\/a> has today revealed that if new or upgrading customers sign-up to new contracts from the 9th December 2020<\/strong>, then they will in the future also see an increase in their monthly bills and it’s another inflation buster. “This will be made in April 2021<\/strong>, based on the Consumer Price Index<\/strong> (CPI) plus 3.9%.<\/em>” The CPI rate they use will be the one published in January each year.<\/p>\n

Meanwhile existing customers will continue to see a normal increase in their monthly bills each April, based on the Retail Price Index<\/strong> (RPI), at least until you need to re-contract or upgrade on to the new terms.<\/p>\n

A Vodafone spokesperson told ISPreview.co.uk:<\/strong><\/p>\n

“We recognise no one wants to see price rises, but these are necessary for us to continue investing in our networks, products and services. This year, our annual price rise will change to the CPI rate plus 3.9%, for new and upgrading customers from 9 December.”<\/p><\/blockquote>\n

At this point consumers will want to know why so many operators are starting to break with the previous mould. Part of the reason will no doubt have to do with the usual issues of rising consumer demand for data and other services, but that alone does not explain the much larger hikes.<\/p>\n

In a recent blog post<\/a> Vodafone’s CTO, Scott Petty<\/strong>, also highlighted the cost of both deploying new 5G<\/a> networks (e.g. a report by McKinsey suggests the total cost of mobile access networks could increase by up to 300% over the next 5 years) and the additional strain being placed on them by the Government’s sudden U-turn to ban Huawei<\/strong> (Three UK<\/a> and Vodafone all have a lot of non-core kit from Huawei that will have to be replaced).<\/p>\n

Meanwhile other factors may include the need to adopt new rules from Ofcom<\/a> (e.g. banning operators from selling locked handsets – here<\/a>), as well as any new costs associated with future spectrum auctions (here<\/a>), implementation of the new Shared Rural Network<\/strong><\/a> (SRN) to boost geographic 4G<\/a> coverage and any costs associated with making their services more environmentally friendly.<\/p>\n

Nevertheless, doing this at the same time as many people are losing their jobs and a second COVID-19<\/strong> related lockdown is occurring seems unlikely to win much favour among consumers.<\/p>\n

UPDATE 4th November 2020 – 7:07am<\/strong><\/p>\n

We’ve had a comment from Three.<\/p>\n

A Spokesperson for Three UK said:<\/strong><\/p>\n

“Like other mobile providers, our pay monthly plans are subject to an annual price change. We have taken the decision to apply an annual fixed percentage increase of 4.5% for new and upgrading customers from 29 October 2020. This means, for example, that a \u00a320 per month contract will see an increase of 90p per month. This change will be applied in April 2021.<\/p>\n

We believe that integral to a great customer experience is certainty and transparency. With a fixed price change compared to the variable and unpredictable increases applied by other MNOs, customers will not have to rely on a fluctuating RPI or CPI rate to clearly understand the full cost of their contract.<\/p>\n

Central to providing the best possible service and range of products is our network, and we must invest more to deliver on this. We are investing +\u00a32 billion in the UK\u2019s fastest 5G<\/a> network to ensure we have a strong network, capable of delivering better connectivity, every day, for every customer.”<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Mobile operators Three UK and Vodafone appear to be taking a leaf out of BT’s (including EE and Plusnet’s) book by becoming the latest telecoms operators to announce annual price hikes that will go beyond their usual RPI or CPI (inflation) linked increases. But with COVID-19 triggering another lockdown their timing couldn’t be worse.<\/p>\n","protected":false},"author":1,"featured_media":24630,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[63,96],"class_list":["post-24629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nThree UK and Vodafone Adopt Inflation Busting Price Hikes UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Mobile operators Three UK and Vodafone appear to be taking a leaf out of BT's (including EE and Plusnet's) book by becoming the latest telecoms operators\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/11\/three-uk-and-vodafone-adopt-inflation-busting-price-hikes.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Three UK and Vodafone Adopt Inflation Busting Price Hikes UPDATE - 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