Government disappointed by unexpected O2 price rise

The UK government has expressed disappointment with O2's unexpected £2.50 monthly price increase for its customers and has asked the media regulator, Ofcom, to review its rules on mid-contract price rises. Technology Secretary Liz Kendall stated the increase is "disappointing given the current pressures on consumers" and believes current regulations need to be strengthened. O2 maintains its transparency, having notified customers directly and offering an option to exit contracts without penalty, provided device costs are still paid. O2's price hike is permissible because it is not linked to inflation, and the company argues it has not violated Ofcom's regulations, which do not explicitly prohibit such increases. The company defended the rise by highlighting its significant investment in its mobile network and the competitive nature of the UK market. However, Liz Kendall contends that O2's action goes against the "spirit" of the rules implemented in January, which aimed to provide consumers with greater transparency and protection from unexpected bill increases. Kendall has requested Ofcom to assess whether the current 30-day switching period adequately... download the app to read more