According to Tech Digest, O2 is facing major backlash over its decision to increase mobile bills by £2.50 per month starting in April 2026, which adds up to an extra £30 annually. This represents a 40% jump from the £1.80 increase customers were originally informed about when signing contracts. Technology Secretary Liz Kendall has intervened, demanding Ofcom undertake a rapid review of consumer protection in the telecoms market. Consumer groups are furious, arguing this undermines new pricing transparency rules. O2 claims the increase is necessary to fund its £700 million annual network investment and says it’s permitted under current Ofcom rules, while noting customers can exit penalty-free within 30 days.
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The Transparency Problem
Here’s the thing about this whole mess: it’s not really about the money. I mean, sure, nobody wants to pay more, but we’re talking about 8p per day. The real issue is that feeling of being misled. Customers signed contracts thinking they knew exactly what they were getting into, and now the rules are changing mid-game.
Martin Lewis calling this a “mockery of the regulator’s consumer protection regime” hits the nail on the head. When you’ve got one of the UK’s most trusted consumer advocates using language that strong, you know there’s a real problem. The whole point of Ofcom’s new transparency rules was to prevent exactly this kind of bait-and-switch situation.
<h2 id="government-response”>Political Pressure Mounts
Now Liz Kendall’s intervention is particularly interesting. She’s not just asking for a review – she’s specifically calling for something that could fundamentally change how telecoms operate. Her suggestion to adopt an insurance-style model where existing customers get the same deals as new ones? That’s huge.
Think about it: how many times have you stayed with a provider out of convenience, knowing you’re probably paying more than a new customer? Kendall’s proposal would essentially force companies to compete for loyalty rather than just chasing new sign-ups. It’s a radical shift that could actually benefit long-term customers for once.
Where This Could Lead
So what happens next? Ofcom saying the price rise was “disappointing” feels like the regulatory equivalent of a disappointed parent. But will they actually do anything meaningful?
The timing here is crucial. We’re seeing this play out against a backdrop of increasing consumer frustration with essential service providers. Energy companies, broadband providers, now mobile networks – there’s a growing sense that customers are being taken for granted. If Ofcom doesn’t act decisively here, they risk looking completely toothless.
Basically, this could be the moment that determines whether mid-contract price hikes become a thing of the past or just get more creative in how they’re presented. Other providers will be watching this very closely – if O2 gets away with this, you can bet others will follow. But if the government and regulator push back hard enough, we might actually see some real change in how telecoms treat their customers.
