O2 is facing the prospect of losing more than two million customers after unexpectedly raising monthly mobile bills by £2.50, according to new data from consumer group Which?.
The increase — equivalent to £30 a year — is 70p higher than the £1.80 rise customers were told to expect when they signed their contracts. Which? found that 13pc of O2 customers now plan to leave, a proportion which, applied to O2’s 15.8m contract customers, suggests more than two million people could switch providers.
The move has drawn strong criticism from campaigners including Martin Lewis, as well as from Ofcom. Rocio Concha of Which? said it was “not surprising that millions of loyal customers say they will leave,” adding that the unexpected mid-contract price rise risked creating the impression that mobile operators “can play fast and loose with Ofcom’s rules”.
She urged the regulator to urgently review its rules to ensure they protect consumers and prevent abuse. The Which? survey was carried out during the 30-day period in which customers were allowed to leave their contracts without penalty. While that window has closed, out-of-contract customers can still switch without fees.
A source close to O2 rejected suggestions of a mass exodus as “wide of the mark” and said the 2p-a-day rise would not meaningfully strain household budgets.
The backlash comes at a sensitive moment for the telecoms industry. Mid-contract price rises have re-emerged as a flashpoint less than a year after Ofcom introduced new rules designed to curb above-inflation increases. BT, EE, Vodafone and TalkTalk have all announced rises in recent months.
Technology Secretary Liz Kendall has asked Ofcom to revisit the issue and consider a system similar to insurance rules, where existing customers must be offered the same deals as new ones at renewal. Chancellor Rachel Reeves has also intervened, summoning industry bosses to insist that companies “treat customers fairly”.
Trust in mobile networks is deteriorating: only 41pc of adults told Which? they believed operators act in customers’ best interests, and more than three-quarters said it was unfair for providers to increase prices beyond contract terms.
Mobile operators maintain that price rises are necessary to fund network upgrades and that customers have freedom to exit contracts when increases are announced.
An O2 spokesman said the company had been “fully transparent,” writing directly to customers and offering the right to leave without penalty. He criticised Which?’s findings as “highly speculative and misleading,” noting the survey was based on fewer than 400 people. He added that competition remains strong, with falling average telecoms prices, rising usage and increased industry investment.
