Three has become the latest mobile provider to confirm that pay monthly customers will be hit with a 4% price hike from May.
This increase is based on January’s retail prices index (RPI) rate of inflation as announced last week.
The increase affects all pay monthly customers who joined Three on or after 29 May 2015, including Sim-only users. Three won’t, however, tell us how many customers are affected as it says this is “commercially sensitive”. Pay-as-you-go (PAYG) users are unaffected.
The telecoms provider last raised prices in May 2017 when they rose by a smaller 2.6%.
Today’s news follows EE and O2, which last week confirmed their own price hikes. See below for more information on this.
A spokesperson for Three says: “Like many other mobile operators, our pay monthly plans are subject to an annual price increase in line with the RPI rate of inflation published by the Office for National Statistics. This year, our customers will see an increase of 4% – for example a Three customer currently paying £20 per month will see an increase of 80p per month. We plan to start introducing this during May 2018 and will be getting in touch with impacted customers, to let them know of this change and how this will affect them directly.
“We know price increases are frustrating, but we are committed to giving customers the best experience possible by offering benefits such as roaming in 71 worldwide destinations at no extra cost, streaming the latest shows and music without eating into data, 4G at no extra cost, plus access to weekly rewards and free stuff through our Wuntu app.”
Can I cancel my contract penalty free?
Affected customers cannot cancel their contract penalty free because of this price change.
Under regulator Ofcom’s rules, customers taking out new mobile, landline and broadband contracts from 23 January 2014 can only cancel penalty free if a provider hasn’t made clear at the point of sale that prices can rise mid-contract.
Are other providers raising prices?
Yes. Here’s what the major telecoms providers have announced:
- EE monthly mobile users will be hit with a 4.1% price hike from 30 March.
- O2 mobiles users will have a 4% price rise from their April bills.
- Vodafone has confirmed that “pay monthly contracts taken out on or after 5 May 2016 have an annual price adjustment in line with the RPI”. It says it will use February’s RPI, which will be announced in March. This will apply to customers’ bills from April.