Millions of Virgin Media O2 customers across the UK are facing higher broadband and mobile bills as the telecoms giant unveils a new pricing structure that will see costs rise significantly from next spring.
Inflation-Plus Pricing Model Explained
The provider has confirmed it will implement a new inflation-linked pricing model starting April 2024. Bills will increase by the Retail Price Index (RPI) rate from January 2024 plus an additional 3.9%.
This marks a departure from their previous approach and brings Virgin Media O2 in line with other major providers like BT, EE, and Vodafone, who already use similar inflation-based increases.
What Customers Can Expect to Pay
Based on current RPI rates, customers could see their bills rise by approximately 8.8% overall. For someone paying £50 per month, this would mean an extra £4.40 monthly or nearly £53 annually.
The changes will affect both broadband and mobile customers, with the exact increase depending on individual contract terms and the final RPI figure published in January.
Consumer Rights and Exit Options
Consumer advocacy groups have raised concerns about mid-contract price rises, but there is some protection for customers:
- Customers within their minimum contract term cannot exit penalty-free despite the price increase
- Those outside their initial contract period can switch providers without facing exit fees
- Virgin Media O2 must provide 30 days' notice before implementing the changes
Industry-Wide Trend Continues
This move reflects a broader trend in the telecoms industry where providers are shifting toward inflation-linked price increases rather than fixed percentage rises. The practice has drawn criticism from consumer groups who argue it makes budgeting difficult for households already struggling with cost-of-living pressures.
Virgin Media O2 maintains that the increases are necessary to continue investing in network improvements and customer service enhancements across their UK infrastructure.
Customers are advised to review their contracts and consider their options ahead of the April implementation date, particularly those who are out of contract and could potentially find better deals elsewhere.
