Around 1.6 million pay monthly Virgin Mobile customers will be hit with price hikes of 3.3% from July, the provider has announced.
The increase is linked to March’s retail prices index (RPI) measure of inflation and follows in the footsteps of other major mobile networks.
In addition, Virgin Mobile is upping out of bundle prices for around 200,000 pay monthly users. Moneywise is awaiting confirmation of the changes, but Virgin Media says it will include out-of-bundle call charges, for example.
Virgin Mobile says 1.4 million mobile users – made up of pay monthly users who joined after February 2018 as well as pay-as-you-go (PAYG) users – are unaffected by the price hikes.
A Virgin Media spokesperson says: "To continue giving our customers more innovation and fast, flexible plans, we sometimes need to review our pricing. We communicate any changes clearly to our customers and continue to invest to give them even better services."
Can I cancel my contract penalty free?
Customers only affected by the RPI price hike cannot cancel their contract penalty free as a result. This is because under Ofcom 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. Virgin Mobile says it makes it clear in its contracts and online that it can raise prices in line with RPI each year.
However, those who are “materially affected” by the out-of-allowance changes will have the right to cancel penalty free and will have 30 days to do so from the date of their price change communication.
Are other providers raising prices?
Yes. Here’s what other major telecoms providers have already announced:
- EE monthly mobile users were hit with a 4.1% price hike from 30 March.
- O2 mobiles users were hit by a 4% price rise from their April bills.
- Three pay monthly customers who joined on or after 29 May 2015 will see prices rise by 4% on their May bills.
- Vodafone pay monthly users who joined on or after 5 May 2016 were hit with a 3.6% price hike from April.