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21 Feb 2020

O2 and Three to raise pay-monthly mobile prices by 2.7% - what are your options?

Bills will rise with inflation in the next few months

Pay-monthly mobile customers on O2 and Three will see their bills rise in the next few months, after the latest inflation figure was announced.

If you're with O2 or Three, you'll be affected by the price increase, no matter how long your contract is.

Below, we explain your options and how to save money on your mobile phone bill.

How much will my bill go up by?

Prices for pay-monthly mobile customers on O2 and Three will rise by 2.7%.

  • If you're an O2 customer on a pay-monthly tariff, taken out after 23 January 2014, your bill will go up from April.
  • If you're a Three customer on a pay-monthly or Sim-only tariff, taken out after 29 May 2015, your bill will go up from May.

For example, if you were on a £30 monthly mobile plan, this would increase by 81p a month.

Are other mobile networks raising prices?

EE has already announced a price rise of 2.2%, in line with December's inflation figure.

BT also recently wrote to customers about a 1.3% price rise.

Vodafone uses February's inflation figure, which will be announced on 25 March.

Can I leave if I'm mid-contract?

You can leave a mobile contract within 30 days of being notified of a price rise that's above inflation, without having to pay any penalties.

As this price rise is in line with inflation, you wouldn't be able to leave if you're mid-contract without paying any penalties that may apply.

I'm out-of-contract: should I switch?

If you're out-of-contract, it's very likely you can save money by switching to a new deal.

Below, we've highlighted some top picks for Sim-only deals based on different data allowances - whether you use it occasionally or like to regularly check your social media feeds.

ProviderDataMinutesContract lengthMonthly cost
Low data usage (up to 2GB)
iD Mobile1GBUnlimited30 days£6
GiffGaff2GB50030 days£8
Medium data usage (up to 10GB)
Plusnet Mobile4.5GBUnlimited30 days£7
Sky Mobile10GBUnlimited12 months£10

All prices correct as of 20 February.

I want to stay with O2/Three: what are the best deals?

If you're with O2 or Three and want to stay with your provider, there's still a good chance you could save money by switching to a new deal.

Here are a few Sim-only picks from O2 and Three that you might consider:

DataMinutesContract lengthMonthly cost
O2
4GBUnlimited12 months£13
40GBUnlimited12 months£20
Three
30GBUnlimited12 months£19
UnlimitedUnlimited12 months£22
All prices correct as of 20th February 2020.