{"id":37031,"date":"2024-02-14T07:28:11","date_gmt":"2024-02-14T07:28:11","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37031"},"modified":"2024-02-14T08:22:25","modified_gmt":"2024-02-14T08:22:25","slug":"broadband-tv-and-mobile-price-hikes-set-for-virgin-media-o2-uk","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/02\/broadband-tv-and-mobile-price-hikes-set-for-virgin-media-o2-uk.html","title":{"rendered":"Broadband, TV and Mobile Price Hikes Set for Virgin Media O2 UK UPDATE"},"content":{"rendered":"<p>The release of the latest monthly UK inflation figures, which saw the Retail Price Index (RPI) fall to 4.9% (down from 13.4% at this time last year), means that UK customers of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a> and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a> can now confirm how much they&#8217;re going to be impacted by the operator&#8217;s next round of annual price hikes.<!--more--><\/p>\n<p>In case anybody has forgotten, since last year VMO2 has based their annual price hikes off the RPI (not the lower CPI figure, like most providers use) rate as published in February each year plus another 3.9% on top, which is typically then applied to customer bills from April. Put another way, existing customers can expect their monthly payments to increase by a<strong> total of 8.8%<\/strong> this year (this works out at an average of \u00a34.16 per month for VMO2).<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> Last month saw most of the largest broadband and phone providers confirm annual hikes of between 7-7.9% (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2024\/01\/jan-2024-inflation-figures-reveal-uk-broadband-isp-price-hikes.html\">here<\/a>).<\/div>\n<p>However, it&#8217;s worth pointing out that this only applies to service rentals (broadband and mobile), which means that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a>&#8217;s device plans (e.g. the Smartphone in a mobile bundle) won&#8217;t be impacted. Furthermore, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a> customers whose plans started before 25th March 2021 will receive a price increase of RPI alone. In addition, the operator protects vulnerable customers from these hikes, which means that users on <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a>&#8217;s &#8220;<em>Essential Broadband<\/em>&#8221; social tariffs and &#8220;<em>Talk Protected<\/em>&#8221; landline customers are not impacted.<\/p>\n<p>The good news is that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> recently moved to ban mid-contract hikes that are linked to either inflation or percentage-based price rises (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/12\/ofcom-uk-ban-some-mid-contract-broadband-and-mobile-price-hikes.html\">here<\/a>). But the regulator\u2019s change won\u2019t arrive in time to impact this year\u2019s hikes &#8211; the changes are expected to be introduced from late 2024.<\/p>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> will instead require providers to tell customers precisely what any such hikes will be when they sign up (&#8220;<em>in pounds and pence<\/em>&#8220;), which rules out changes linked to unknown future inflation values or percentages. In theory, this should help to make future pricing clearer, although prices &#8211; at least among the biggest providers &#8211; will still rise (it won&#8217;t stop mid-contract hikes completely).<\/p>\n<p>The biggest providers often say they need to raise prices because they&#8217;re frequently adding all sorts of new services (e.g. <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>), have to introduce new rules and regulations (e.g. automatic compensation, protection for vulnerable customers, social tariffs etc.), developing new systems, facing higher charges from suppliers (e.g. energy) and consumers are also gobbling significantly more data every year. But the latter must also be weighed against any fall in the cost of data capacity elsewhere vs any increase in broadband speed or usage from new products etc.<\/p>\n<blockquote class=\"bq1\"><p><strong>A VMO2 spokesperson said:<\/strong><\/p>\n<p>\u201c2023 was a record year for traffic on our networks as customers used our mobile and broadband services more than ever. We are investing heavily to ensure we continue to provide the fast and reliable connectivity our customers rely on, and the amount we receive from price increases is greatly outweighed by the \u00a35m we invest every single day to upgrade our networks and services to give customers a better overall experience.<\/p>\n<p>It\u2019s clear that we continue to offer excellent value, with customers paying less and receiving more. Recent independent analysis found that the cost of telecoms services has fallen by a fifth since 2017, while at the same time speeds and usage have increased significantly.<\/p>\n<p>We will be writing to all impacted customers directly to explain when, why and how any price changes may come into effect.\u201d<\/p><\/blockquote>\n<h3><span style=\"color: #339966;\"><strong>Alternative Strategies<\/strong><\/span><\/h3>\n<p>The best way to save money is to vote with your feet and switch ISP (where viable alternatives exist and the terms of your plan allow). But those who are happy with the service they receive, or who perhaps have no other viable options, may prefer to try haggling for a lower price when the latest hike hits (<strong><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2017\/04\/retentions-tips-cutting-broadband-bill-without-switching-isp.html\">Retentions \u2013 Tips for Cutting Your Broadband Bill<\/a><\/strong>), although your mileage may vary \u2013 big ISPs are more responsive to this.<\/p>\n<p>Alternatively, there are a lot of smaller ISPs out there that only very rarely increase their prices, if at all, and quite a few of those have kept their prices frozen. In particular, if you\u2019ve recently been covered by a new alternative full fibre (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>) network, then the aggressive market competition that exists often ensures that their prices stay low to help drive adoption.<\/p>\n<p>We should add that those who are on state benefits (<strong>Universal Credit<\/strong> etc.) may have the additional option of taking a cheaper <strong>Social Tariff<\/strong>, which is another way to cut your costs \u2013 see our article on this: <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/08\/a-quick-guide-to-uk-social-tariffs-getting-broadband-for-15.html\" target=\"_blank\" rel=\"noopener\"><strong>A Quick Guide to UK Social Tariffs \u2013 Getting Broadband for \u00a315<\/strong><\/a>. But you won\u2019t always be able to access the fastest speeds or most advanced routers \/ features with such a tariff.<\/p>\n<p><strong>UPDATE 8:18am<\/strong><\/p>\n<p>We&#8217;ve added an official comment from VMO2 above. The operator informed us that they also invest more than \u00a35m every single day to improve their networks and services \u2013 a figure far greater than the increases customers will see on their bills.<\/p>\n<p>O2 added that last year was the biggest ever for data use on their network, with mobile data traffic up by 26% compared with 2022, while data use on <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a>&#8217;s fixed network increased by 13%. The operator added that high inflation has also pushed up their costs &#8220;<em>significantly over the past year, with our energy bills more than doubling over the last two years<\/em>.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The release of the latest monthly UK inflation figures, which saw the Retail Price Index (RPI) fall to 4.9% (down from 13.4% at this time last year), means that UK customers of Virgin Media and O2 can now confirm how much they&#8217;re going to be impacted by the operator&#8217;s next round of annual price hikes.<\/p>\n","protected":false},"author":1,"featured_media":31718,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,419,56,32,475],"class_list":["post-37031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-docsis3-1","tag-fttp","tag-o2","tag-virgin-media"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111928658726241846","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - 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