Uswitch responds to Vodafone's 'pounds and pence' cost increases announcement

Ernest Doku, telecoms expert at Uswitch.com comments on Vodafone’s announcement that from 2nd July all new contracts will include details of “pounds and pence” cost increases:

“Vodafone is now the second UK telecoms provider, after BT/EE, to change to a ‘pounds and pence’ model for mid-contract price increases - a move that will likely be welcomed by customers and will give greater clarity to consumers in advance of Ofcom’s ruling on this, expected later this year.

“Vodafone’s decision to apply mid-contract charges at a flat rate of £3 per-month for all broadband and £1 per month for some mobile tariffs, while offering simplicity, still means there will be winners and losers.

“Those on cheaper plans will see their contracts increase by a greater percentage, relative to their initial outgoings. For example, broadband customers on Vodafone’s Full Fibre 74 tariff which costs £312[1] a year will see an annual price increase of 11.5%[2] whereas those on Vodafone’s Full Fibre 910 tariff at a cost of £504[3] a year will see an annual increase of 7%[4].

“The change also excludes existing customers and out-of-contract customers, who will still be subject to inflation-linked and percentage-based price hikes come next year.

“As always, it pays to know where you stand with your mobile and broadband contracts. If you are signing-up to a new contract, carefully review the terms, whether any mid-contract price rises will apply and see if you can save money by switching to a better deal”.