Tesco Mobile is committing to its industry-leading Tariff Promise for the third consecutive year as its peers continue to reap millions of pounds of customers’ money from Hidden Hikes, as operators raise tariffs before the end of a customer’s contract.
This week, EE and O2 announced they will be raising customer tariffs by 1.1% ‘in line with Retail Price Index (RPI) price changes.’ These increases will come into effect from March and April for all customers, regardless of when their contracts end and will mean that they will be paying more for the tariff they initially signed up to.
This increase comes on top of the 2.7% that EE, O2, along with T-Mobile and Orange added to their customer phone bills in 2014. Virgin Mobile increased its customer’s prices by 2.5% last year.
Following the consumer backlash about these mid-term price hikes in 2013, Ofcom ruled that mobile providers must give customers 30 days notice (or notify them at time of purchase if bought after 23rd January 2014), of any price increases or reduction in minutes or data.
Customers affected by these price hikes may be able to leave their network penalty free depending on when they signed their contract and the information they were given. However many are still unclear about their rights.
Tesco Mobile is the country’s first network to introduce a Tariff Promise, a commitment never to raise its customers’ core tariff prices mid-contract, guaranteeing the price a customer signs-up to at the start of a contract, will be the same price they pay for the entire contract term.
Simon Groves, Chief Marketing Officer of Tesco Mobile said:
“Continuing the Tariff Promise into its third year demonstrates our on-going commitment to providing a fair and clear service to our customers.
“We believe there is no reason for networks to use these Hidden Hikes to increase prices agreed with customers, even at the standard rate of inflation. We want to reassure our customers of this simple fact: Tesco Mobile guarantees not to increase prices mid-contract”.