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See how much you could saveCustomers urged to avoid O2 price hike
The network plans to increase Sim-only charges for around 15 million customers by £2.50 a month instead of £1.80, as it originally told customers
Which? is urging O2 customers to consider switching mobile provider, after the company confirmed it would raise prices by more than it had originally stated.
The network plans to increase Sim-only charges for around 15 million 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.
Ofcom said O2’s action appeared to go against the spirit of those rules, although the company said it had not breached them.
Read our guide to the best and worst UK mobile networks to find a provider that won't charge you hefty annual increases
Ofcom and Which? call for greater pricing transparency
Ofcom’s new rules were introduced following a Which? campaign calling for greater transparency and certainty about the total cost of mobile and broadband contracts.
The regulator now requires networks to tell customers by 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.
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'.
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.'
Virgin Media and O2 announce new price hikes: can you avoid them? New broadband and TV customers are set to see even bigger price rises in 2026, and now O2 has followed suit for mobile customers.
How much are O2 prices rising by?
- The new price increase applies to Pay Monthly mobile customers, raising customers' Sim prices by £2.50 a month every April.
- The company had previously advertised that monthly prices would go up by just £1.80.
- It doesn't apply to anyone on a social tariff.
Data-only deals for Smartwatch and mobile broadband are not impacted, with the annual increase staying at 75p a month. Out-of-bundle charges also remain the same – a 5% increase each April.
The change is immediate and applies to both existing and re-contracting customers, although prices will not increase until April 2026. If you're an O2 customer and unhappy about this increase, you can ask to exit your contract without paying a penalty fee.
Ofcom said it had written to the major mobile companies reminding them of their obligations to treat customers fairly.
'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,' Ofcom said.
O2 said: 'As acknowledged by Ofcom in its letter to providers last week, its rules do not prevent companies from increasing annual price changes – for example, to invest in improving networks for customers.
'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.'
For more details on what O2 has to offer, see our O2 mobile review.
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How do I switch?
There is currently a 30-day window to switch from O2 penalty-free - you can switch to a better mobile provider today.
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