Customers of ISP O2 UK look set to be hit by a small price rise in the monthly cost of their fixed line home broadband and or phone bundles. Despite the recent +2.5% hike in VAT during early January 2011, customers can now expect a second similar rise to occur on 31st March 2011.

For example, O2's entry level 'The Basics' package (up to 20Mbps speeds, 20GB usage allowance) currently costs £8.17 per month for existing O2 mobile customers and £13.28 for non-customers. Under the new prices these would both rise to £8.50 and £13.50 respectively.


Some existing customers recently complained that they were already being charged the new prices, although it's since emerged that this was the result of an email communication glitch. The new prices should not take effect until 31st March 2011 as stated.

So, why a second rise so soon after the nasty VAT hike? O2 recently revealed that it had increased investment in its network by 25% for 2011, albeit mostly to upgrade its mobile services, and as a result it looks as if fixed-line customers are picking up the tab.


However ISPreview.co.uk has learnt that customers on the older legacy home broadband packages, such as those offering "unlimited downloads", can expect their prices to rise by significantly more (e.g. rises of +£3 per month have been reported). O2 claims that this is because the packages cost more to support, although some customers fear that it is merely a ploy to make them upgrade onto newer contracts.

At the time of writing there is no sign of the same rises affecting O2's sibling ISP, Be Broadband UK, although there is no guarantee that this won't happen in the very near future.