UPDATED: EE announces price rise for Orange and T Mobile contracts

Everything Everywhere will increase prices by 3.3% for some of its pay monthly customers on Orange and T-Mobile contracts.

The average bill would rise by 70p per month for customers on its 3G plans, the operator said, starting from April 10 for Orange customers and May 9 for T-Mobile customers.

The increase was a result of rising business costs, Everything Everywhere (EE) said.  Customers on 4G plans would not be affected because these were newer plans which had already taken into account the rise in business costs, an EE spokesperson confirmed.

Customers on 4G plans pay more for access to the faster services, due to EE’s investment in the network, the operator said.

Fix Your Monthly Plan

The operator has also launched a Fix Your Monthly Plan option, which allowed customers to fix the price of their monthly contract.  This would mean in-contract fees would be frozen for the duration of the contract, Mobile News reported, costing 50p a month for those paying less than £14.99 monthly, £1 for contracts between £15 and £24.99, £1.50 for customers paying £25 to £34.99 and £2 for anyone paying over £35, with 4G customers not eligible for the deal.

EE’s terms and conditions  involve sections allowing the operator to change contract prices, with written notice, which T-Mobile and Orange customers would be receiving. Customers had an opportunity to review the T&Cs before accepting them, an EE spokesperson said.

Customers affected by the price change would not be able to leave their contracts without paying a cancellation charge, the spokesperson said.  If they were unhappy, they should speak directly to EE to ensure they were getting the most from their price plan, and EE would discuss this on an individual basis, the spokesperson said.

The breakdown

Consumer pay monthly customers who joined Orange before 2nd December 2012 would see a 3.3% rise in their monthly plan’s cost.  SIM only, mobile broadband, The Works and current pay monthly consumer plans would not be affected and neither would Orange business customers, an EE spokesperson said.

Consumer and small business pay monthly customers on Full Monty £36 or more, or who joined on any other plan prior to 22nd January 2013 would see a 3.3% increase in the cost of their monthly plan.  SIM only customers on plans longer than 30 days before 1st May 2013 would see a 3.3% increase from 1st June.  Consumers on 30 day SIM Only, mobile broadband and current consumer plans would not be affected by these changes, an EE spokesperson said.

Which? reported that each of the major mobile network operators had increased prices mid-contract in the last 12 months.

Ofcom consultation launched

Ofcom confirmed that a number of telco operators had announced pricing changes to contracts over the past year and this had resulted in a number of complaints.

The current rules allow for operators to change prices except where it would cause material detriment to the consumer, and operators interpreted this definition differently, an Ofcom spokesperson said.

Ofcom said it was consulting on how to better protect consumers from price rises during fixed contracts, and its proposed approach was to allow consumers to exit their mobile, landline or broadband contract without penalty, if their provider introduced any price increase during the term of the contract.

“Alongside this, Ofcom would expect providers to be clear and upfront about the potential for price increases and of the consumer’s right to cancel the contract in the event of any price increase.”

The consultation closed on March 14th, with a decision expected in June on how best to give consumers a fairer deal in relation to mid-contract price rises.