Vodafone has today confirmed that mobile prices will rise by 3.2% from April in line with today’s inflation figures.
The Office for National Statistics (ONS) today announced that the Retail Prices Index (RPI) measure of inflation rose from 2.6% in January to 3.2% in the year to February – and it’s this February figure announced in March that Vodafone uses to determine forthcoming price increases.
This is a larger increase than the 2.5% and 2.6% increases EE and O2 customers respectively face. See below for more on this.
Vodafone wouldn’t tell us how many people will see prices rise, but it did confirm that the rise affects pay-monthly and SIM-only customers who joined or upgraded from 6 May 2016.
Those who took out Vodafone contracts prior to 6 May 2016 are covered by the firm’s ‘Fixed Price Promise’ and won’t see any price rises until their contract ends.
Pay-as-you-go customers are not affected.
Can I cancel my contract penalty free?
Sadly you can’t cancel your contract penalty free as a result of the price rises as Vodafone says its terms and conditions state that monthly plans can increase annually by RPI.
Under telecommunication regulator Ofcom’s rules, customers who take out or upgrade their contract on or after 23 January 2014 can cancel their contract penalty free if a provider ups prices mid-contract – but only if they weren’t told about this possibility prior to agreeing their deal.
A spokesperson for Vodafone says: "These changes will help us to maintain our multi-billion pound investment in our bigger and better network while providing the great products and services which our customers expect from us."
Are other providers increasing prices?
- EE’s pay monthly, SIM-only, and mobile broadband customers who joined or upgraded since 26 March 2014 will be hit with price hikes of 2.5% from 30 March.
- O2 customers on pay monthly, SIM-only, O2 Refresh (Airtime Plan only – the Device Plan element is unaffected), mobile broadband and SMB Business contracts will be hit with price hikes of 2.6% from their April bills.
- Three has yet to announce or make a decision on whether to raise prices this year. Its contracts do, however, allow for prices to increase in line with inflation each year.