O2 broadband prices to increase from ThursdayO2 cite 'dramatic change in internet use' as cause

29 March 2011

O2 broadband price increases

O2 broadband and home phone prices to increase from this Thursday

O2 home broadband and home phone customers will see changes to their monthly bills from 31 March, due to a 'dramatic change in internet use in recent years'.

The changes will apply to existing and new home phone and broadband customers, with increases ranging from a few pence to several pounds a month, depending on your package. 

O2 says these are the first price increases since it launched its home broadband services in 2008, but that it cannot continue to maintain its high service levels at the same price in the current climate. 

It adds that the use of the internet has changed dramatically in recent years, and to be able to continue offering customers the level of service that they'd expect, it needs to continue to invest in its network to keep up with demand.

Has your broadband package kept pace with how you use it? You can find out how high a usage limit you need and get recommendations for the perfect broadband deal with the Which? broadband calculator.

O2 home broadband and phone price changes

O2 broadband customers in O2's network area who signed up since O2 launched its new package range in September 2010 will see relatively small increases of between 14p and 68p per month. This applies if you have O2's 'The Basics', 'The All Rounder' or 'The Works' packages.

Customers on O2's 'Access' package - which applies to those outside the O2 network area - and those on older packages will see more substantial increases of up to several pounds.  

O2 customers experiencing substantial increases will be allowed to leave their contracts early without penalties. An O2 spokesman told Which? that: 'Any customer on our legacy packages (Standard, Premium, Pro, Ultimate, and any Access customers) who do not want to pay the increased price, or change to one of our new packages will be allowed to leave us at no cost.'

O2 has also changed prices for its home phone packages. The monthly fees for call packages that include evening and weekend or anytime calls are increasing between 30p and 89p per month compared to current prices. However its basic 'pay for what you use' line rental package is actually decreasing in price from £7.66 to £7.50 per month.

O2 network-area packages still competitive

Even with the increases, O2's 'The Basic', 'The All Rounder' and 'The Works' packages remain competitively priced, particularly if you have a mobile phone service with O2 as well - in which case you receive a £5 discount on the monthly fee. After the price increases, O2 standalone home broadband prices will cost from £13.50 a month - or £8.50 if you have an O2 mobile service - for up to 20Mbps speeds and a monthly cap of 20GB.  

O2 has full details of the price changes on its website, and says it has written to all existing customers to let them know. 

When you're choosing a broadband package, it's important to weigh up price against aspects of the service such as speed, usage limits and customer service. Find out how O2 compares to rivals across all of these areas in the Which? broadband review. 

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