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The mobile operator will now communicate pricing changes to customer in ‘pounds and pence’, rather than via esoteric inflation price indexes
This week, Three UK has announced that it will simplify the way in which it communicates mid-contract price rises to its customers.
The annual price hikes will now be conveyed in terms of ‘pounds and pence’, as per Ofcom’s new regulations aimed at stopping customers being hit with unexpected bills.
The changes will come into effect for new and upgraded Three customers from September.
“Like many mobile providers, we regularly review and revise our pricing to ensure that we remain competitive and reflect the cost pressures we face as a business,” said Elaine Carey, Chief Commercial Officer at Three UK. “While we have always made sure annual price changes are clear and transparent to customers, we want to provide greater clarity going forward. Our unique tiered approach means any increase is fair, while ensuring our prices remain competitive.”
In December last year, Ofcom proposed the introduction of stricter rules surrounding mid-contract price hikes for mobile, pay-TV, and broadband customers, after an investigation found that many customers were confused about inflation-linked price increases.
The new rules would force telcos to do away with ‘confusing’ metrics like the consumer price index (CPI) or retail price index (RPI), and instead communicate changes to customers as a simple numeric value. They also require pre-planned price rises to me made more obvious to customers when they first sign up for a new contract.
The new rules were formally adopted last month, with telcos given until 17 January 2025 to make the necessary adjustments.
BT/EE pre-emptively adjusted it policy back in April, with Vodafone and TalkTalk having quickly followed suit.
In somewhat related news, Three’ planned merger with Vodafone will remain in limbo for a while longer, after the Competition and Markets Authority announced this week that it required more time to assess the impact of the merger.
The two companies argue that the £15 billion merger will allow them to invest more heavily in UK infrastructure, generating an economic boost for the UK. Detractors, however, argue that reducing the mobile market from four players to three will make it less competitive, potentially leading to increased prices for consumers.
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