Consumer champion Martin Lewis has launched a blistering attack on mobile provider O2, urging customers to "give them a corporate bloody nose" by cancelling their contracts following controversial price increases.
O2's Controversial Price Increase
O2 confirmed last week that it will raise prices in April, with increases ranging from £1.80 to £2.50 per month for affected customers. This move comes despite new Ofcom regulations introduced in January that were specifically designed to prevent unpredictable mid-contract price hikes linked to inflation percentages.
The mobile giant has exploited a regulatory loophole that allows price increases provided customers are given 30 days to cancel without penalty if they refuse to accept the new terms. This technical compliance has drawn criticism from both consumers and regulators alike.
Martin Lewis's Fiery Response
Speaking on ITV, the MoneySavingExpert.com founder didn't mince words when addressing O2's decision. "When companies behave like this, and increase our costs in a way no-one should have or could have expected, the way that we need to deal with them is we need to give them a corporate bloody nose," Lewis declared.
He emphasised that customer action could serve as a powerful deterrent: "Increase their costs by them losing customers and brand and reputation, to prevent them doing it again, and to prevent all the other mobile and broadband and pay TV services doing it."
Lewis made a passionate plea for collective action, stating: "So don't just leave for yourself - leave for everyone else too."
Practical Alternatives for O2 Customers
The consumer expert provided concrete advice for those considering switching providers. He recommended using comparison websites to find the cheapest SIM deals, noting that "the cheapest deals are on comparison sites because that's where the churners go and you get better deals there."
Lewis highlighted several attractive alternatives currently available in the market, including:
- A 35GB data plan for just £3 per month
- Sky's 10GB deal at £6 monthly
- Giffgaff's unlimited data package for £15 per month
For customers concerned about signal quality, he explained that "there are lots of networks that pay O2 to piggyback on its signal so you get the same signal on their networks." This means customers can maintain O2's network coverage while paying significantly less through alternative providers.
Those wishing to remain with O2 were advised to benchmark costs elsewhere and then "haggle, politely ask - it's not the call handler's fault - and ask them to match it." Lewis suggested this approach should work given customers' right to leave penalty-free.
Regulatory Disappointment and Customer Rights
Ofcom expressed significant disappointment with O2's decision, stating it "goes against the spirit of our rules which are designed to ensure greater certainty and transparency for customers when they sign up."
The regulator has written to major mobile companies reminding them of their obligations to treat customers fairly. They explicitly encourage "any customer who wants to avoid these price rises to exercise their right to exit without penalty and sign up to a new deal."
O2 defended its position, citing Ofcom's acknowledgement that "its rules do not prevent companies from increasing annual price changes – for example, to invest in improving networks for customers." The company emphasised its £700 million annual investment in network improvements and noted that UK consumers benefit from "extremely competitive market and some of the lowest prices compared to international peers."
The spokesperson added: "We appreciate that price changes are never welcome, but we have been fully transparent with our customers about this change, writing directly to them and providing the right to exit without penalty if they wish."
With the April price increase looming, customers now face a crucial decision: accept higher costs or follow Martin Lewis's advice to vote with their feet and seek better value elsewhere.
