Mobile operators are preparing for steep price increases above the inflation rate.
The changes will land them with hefty price increases next year, reports the Liverpool Echo.
Mobile firms often increase costs every year, however according to MSEThis usually equates to inflation, while the cost is much higher now.
Vodafone and Three pay monthly Cell phone, mobile phone or broadband customers could find themselves caught up in costly price increases after a price shift from the major networks, with many new and contracting customers likely to raise their bills by more than inflation in 2021.
Once you agree to a new deal, you are bound to the price increase.
Three will increase prices by 4.5% next April for customers with monthly payments who sign or renew a new contract starting October 29, 2020. This affects all monthly customers, including customers with cellular plans, SIM-only offers, mobile broadband, and home broadband.
The increase is done annually, which means the bills will also increase 4.5% in April 2022 – and annually thereafter. If you signed or renewed a new contract with Three before October 29, 2020, this price increase will not apply to you. Instead, inflation will only increase your bill next April, like it did in May.
Similarly, Vodafone will raise prices this coming April through inflation and 3.9% for customers with monthly payments who sign or renew a new contract from December 9, 2020.
As with Three, this affects all monthly customers, including customers with cellular plans, SIM-only and broadband home plans, and Tablet, Apple and Samsung Watch, OneNumber for Watch and Vodafone Basics plans.
Here, too, the price increase applies annually, so that the bills will increase due to inflation plus another 3.9% in April 2022 and annually thereafter. If you signed or extended a new contract with Vodafone before December 9, 2020, this price increase does not apply to you. Instead, inflation will only add to your bill next April, as it did this year.
MSE states that many companies regularly raise prices during the contract period. They are allowed to do so as long as they warn customers when they sign up, but up until this year price increases on contracts were usually only possible with the rate of inflation.
The notable change now is that some companies are starting to prevent price hikes above inflation, which means your bills will rise much steeper.
In addition to Vodafone and Three, MSE reports on vision BT, EE and Plusnet do this already this year.
According to MSE, this message does not mean that you should rule out renewing or signing a new contract with Three or Vodafone, but that it is important to keep this in mind when making your decision.