Another price increase on Vodafone’s ‘fixed’ contracts

by , Conversation Editor Technology 28 September 2012
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Well what do you know – Vodafone is putting its prices up again for existing pay-monthly contract customers. It was almost a year ago since it last put prices up. This is turning into a recurring nightmare.

Vodafone

If you signed up to Vodafone before 7 September 2012, check your inbox. You’ll likely find a text telling you that from 1 November your monthly line rental will increase, but ‘less than inflation’. It’s certainly nice of them to let you know…

Prices are going up by as much as 2.4%, which is less than the Retail Prices Index rate of inflation. If the price rise is less than RPI, their contracts allow them to hike them up on a yearly basis. Vodafone writes on a page titled ‘changes to your price plans’:

‘Like most businesses in the UK our costs are rising. So we need to review our prices now and again. We’ve made every effort to minimise the impact and have kept this increase below inflation.’

Vodafone’s line rental price rise

Last year Vodafone rounded up contract prices to the nearest 50p for a potential 3.7 million customers tied into their contracts. I’m surprised Vodafone has been so cheeky to do a second price rise, especially following the customer backlash the first time around and the launch of our Fixed Means Fixed campaign.

That price rise was announced in September 2011, and we estimate that in that time Vodafone has made up to £10.5m in revenue from it. So, Happy Price Rise Birthday to Vodafone, it’s nice of you to make your customers pay for your birthday present.

So how big is this present going to be? On an individual basis it’s not much. At 2.4% you’re going to be looking at an average of around 59p per month for the majority of Vodafone customers, or £7 a year. Sure, it’s just a few pints, but it’s the principle of the thing. If I sign a two year contract for a certain monthly payment, I expect Vodafone to stick to that payment.

I guess you’ve got to give mobile providers some credit – they’re certainly determined to stick to their guns. In fact, only one mobile company, Utility Warehouse, has agreed to back our campaign by promising not to raise prices for existing customers, and has rewritten its contract T&Cs to reflect this.

Back our Fixed Means Fixed campaign

As for the companies that have put their prices up – Orange, T-Mobile, Three Mobile and Vodafone (and Vodafone again) – we estimate they’ve raked in up to £53m to date from these ‘small’ price rises alone. And we reckon they’re well on course to making up to £90m for the whole year – just think how many cakes you could buy with that!

I might sound like a broken record, but it’s the mobile companies that won’t change their tune.

They’re determined to put prices up on ‘fixed’ contracts, and most of the time their customers have no idea it can happen, as shown in our undercover investigation of mobile shops.

If you’re with Vodafone are your prices going up again? Your views are more power to our elbow – our Fixed Means Fixed campaign seeks to stamp out these nasty surprises. We’re determined to change the industry – Ofcom must intervene, especially now that mobile companies clearly don’t have the courage to stand out from the crowd.

149 comments

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For those asking whether Vodafone needs to give 30 days notice, their T&Cs say that they only need to give 14 days notice for price rises:

7. Changing charges and terms
a. We may occasionally change or introduce new charges. If we believe any change in our charges will not disadvantage you, we may include it without telling you. However, if we increase our charges, we’ll give you at least 14 days’ notice.

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Andrew Johnson

How can a price on a contract change ?! When I signed my 12 month contract I committed to pay them a fixed amount every month plus any additional charges I made on the account. This is abysmal! So if I feel like paying them less can I give 14 days notice to them ?! How can this be so one sided. Ofcom needs to intervene. It’s not about the money, I personally can afford it – though I’m sure in many cases some people can’t afford the increase.. For me it’s about the principal.

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Patricia

I have 2 mobile phone contracts with Vodafone which are not even 6 months old. I spent a lot of time ensuring the price was right for me as I have to budget. I have every intention of getting my money back when they want me to renew. My first step will be to negotiate a new call plan – once I have the best deal I will refuse to renew unless they give me the money back that I think they are fraudulently going to take from me. You would be amazed at what the will do to keep existing customers.
Current contracts are:
£10.50 for 600 mins, unlimited text (this is set to increase by 45p) – Phone Nokia C3
£12.00 for 300 mins, unlimited text, 500MB data (Not confirmed but expecting similar hike) – Phone Samsung Galaxy Ace

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B White

I have just moved from payg to a contract with Vodafone. I have, in writing, their web chat record, where they agreed to offer me a discounted line rental, to transfer £25 credit from my payg and to text me when I got to 80% of my call credit. (I am unused to the system of checking credit.) They have done none of the above and I received a warning that I had exceeded my call limit by a significant amount weeks after it had occurred.
I have spent a further £11 on my mobile (11/2 hours) trying to sort this out, so I have had to pay for their incompetence. They have now transferred my credit and tell me that they will give me the discount as a ‘goodwill gesture.’ They will not do anything about my mobile call overrun, despite not giving me the warning. They say that this warning service had been discontinued, even though it was offered to me and accepted.
In addition they seem to be charging me for VAT in addition to my monthly VAT inclusive deal. I am trying to get to the bottom of this.
Yesterday, to cap it all, they texted to say that they are increasing my fixed price contract. My background is in commercial contracting and I have never come across anything quite as bad as this. I am shocked that a company such as Vodafone feels it can treat its customers as badly as this. I shall do everything I can to recover every penny and make known how they treat customers.

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Barbara

Vodafone talk about clear pricing and being a responsible business. It says on its website:
We’re committed to clear and straightforward pricing and marketing – so that customers always know what they’ll pay but Vodafone in the UK is doing exactly opposite to what they claim clear and straightforward.
http://www.youtube.com/watch?v=K-Al9TuhpSA

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Bob Wells

I am just a few days into a new 24 month contract so this change of price makes me very angry. I have been with Vodafone 14 Years, always got a good deal and service so my defences were down. I am looking for ways to get them to honour contract or get out but in future I will be much wiser and probably look elsewhere first

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Vee

I just don’t understand how that can be written into a contract. That’s like signing something which effectively gives Vodafone a free reign to do anything. It’s like marrying someone and say, I will be faithful to you, but I have the right to have affairs!
How can a contract like this be legal;? Surely, someone with an acumen in law could take this up to the courts?

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Dan

I’m new to Vodafone and signed my contract barely a month ago. I was really annoyed about this price increase. Vodafone say that the price increase is less than RPI inflation, which means we don’t have a right to terminate under their terms and conditions. However, I don’t see how that’s correct taking into account that I signed my contract only recently. Vodafone have applied a year’s worth of RPI inflation to my line rental, but I’ve only been with them for a month. I don’t see how RPI inflation during the full year before I signed up is relevant – they should have already taken that inflation into account in the price I agreed with them.

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Geoff

Well thats a result and a half….
Phoned Vodafone to complain. they gave me a the rubbish about the government telling them to increase charges to 24month contract etc etc etc.
I told them it was rubbish and i would be leaving after my contract ends (been with them for over 20yrs).
The Vodafone guy then offered me a £50 credit on my account!!!!! no if’s no butt’s.

If you talk to them nicely they will back down.
Give it a go.

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Bob Wells

Brilliant, well done – now got scent of blood will follow your example. Cheers B W

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Kev

This price rise is really annoying, I’m 10 months into my contract now, I do remember agreeing to pay £15.50 per month for 24 months. Why should I now have to pay more 10 months down the line with no extra services too, If I had known they would hike their prices up I would have stayed on my t-mobile payg.

It’s not the money I’m complaining about, it’s the principle. They found another way to extort more money from me with a payment admin fee charge of £2.94 (exl VAT) for not paying by direct debit (their fault because they were taking double payments every month) resulting in bank charges

I did try charging them my own payment admin fee because it is me that has to sit at my desk and manually pay them Apparently that will not be possible

I can’t wait for my contract to end, if I don’t stop my payments before then

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Matt0767

It’s not just the price hike that Vodafone have thrown at me, it’s the loss of passport and data traveller. I’m in Europe at least 10 times a month due to my job as airline crew, and this service has been great. Now replaced by euro traveller my bill is set to double. Am desperately trying to get released from my contract, but can’t even get the call centres to understand what my problem is! Have now written to head office, let’s see if that helps!

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D Evans

So agree – plus they stopped sending me bills mid contract too. Shysters

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Laura

I was furious to get a text message informing me of the rise.. Like everyone I thought this cant be right.. I have agreed my contract amount and that is set for 2 years. I have 2 contracts with Vodafone so already paying £90 per month.. I called Vodafone to ask why they think it is acceptable to move the goalposts after I have agreed how much my monthly payments are.
I was told it was unavoidable and that Vodafone tried not to it. I made clear I was furious and if this had been made clear at the beginning I might not have renewed. The chap I spoke to was so condesending and told me that yes there was a “small” rise but vodafone are entitled to do this as long as it isnt more than the RPI. He even had the cheek to tell me “its only a few pence”
I have been a Vodafone customer for quite a few years and this will certainly be the last contract I have with them. I want out now but I am too early into a 2 year contract so I am stuck with them as my only way out is to pay off the remaining months and its far too expensive.

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Lauren

Hi Laura, I am having exactly the same issue except I only have one contract luckily enough. I phoned up vodaphone today to tell them I was unhappy with their actions and got a very nice guy on the phone offering me to pay £42 per month (what I would be paying anyway with the price rise) to get unlimited minutes, txts and 2gb of internet instead of 1. I thought this was a good deal but the other option he offered me was to terminate my contract completely free of charge. I thought this was a fantastic deal as you would! So I said ill go off and phone my dad for advice and get back to him. He said that I would have to write a letter to vodaphone saying that I wished to cancel my contract because of the price rise and quote that the advisor said it would be completely free of charge and they will terminate the contract from then. I would have to do this before the 1st november in order for it to be cancelled before the scheduled price rise.

I phoned back an hour or so later and got 2 different advisors saying that I couldn’t possibly have been offered a termination free of charge because its against their policy!! As a sorry for all the anger I was throwing them down the phone they gave me a grand total of…..£10 credit off my next bill.

The way they treat all their customers is absolutely disgusting and they should be trying to keep them not get rid of them! I shant be renewing either!

Hope you get your issue sorted soon!

Kind regards

Lauren

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Laura

Also.. When they said that I couldnt terminate the contract (Unless I bought it out) I asked them to reduce my tariff as I dont use as much txts or minutes as I used to.. I was told the only time this would be done was 70 days before my contract is due to end and I am renewing! Absolutely ridiculous! But there are more than happy to INCREASE it at any time!!

I did see the piece on Watchdog this evening and I have sent my concerns to OFCOM so hopefully they will take notice.

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D Evans

They certainly are redefining ‘fixed’ – and for the worst. They have:
Increased my costs on a FIXED contract
Stopped sending me bills
Uninterested in sorting an iPhone that constantly drops reception (just fob offs)
Communicate big things by txt like some teenager
Deleted my handy built in use abroad allowance (now its £3 a day)

What a bunch of shysters – do they know what CONTRACT means?

Drop them like they are hot.

Try GiffGaff

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redstringuitar

I’m just over halfway through a 24 month contract and am absolutely disgusted by this flagrant disregard for customer service and contractual agreement on the part of Vodafone.

My broadband provider pulled exactly the same stunt via email notification a few months ago. It was only after a heated phone call that I was informed, by a somewhat shirty customer service rep, of the option to cancel my contract within a specified period,

Given the length of time the network infrastructure has been in place, I don’t see how Vodafone can legitimately claim rising costs as a reason for these illegal price hikes.

These in-contract price increases are nothing short of blatant, dishonest profiteering. Vodafone should beware, it they pull their own house down all they’ll be left with is a pile of bull$#!+!!

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Gabriel

This price-rise is absolutely disgraceful and akin to me walking into work and saying, “My salary has now been increased by 2.4% – take it or leave it. Actually you don’t have the option to leave it. Take it.”

I’ve gone into further, slightly ranting detail on my blog :p http://gabrielquotes.org.uk/2012/10/11/twenty-thousand/#nonsussex

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Jason

I have no problem with Vodafone putting up prices – we’re in a recession after all. But I completely object to them not telling me this would happen, despite only signing up for a new contract a few weeks ago. It’s common decency. So I emailed them today saying that after 17 years I will not be renewing my contract at the end of this term. Let’s all do the same.

And I paid ALL my income tax this year…

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Rudgemeister

It would be interesting to ask Vodafone about their view on business ethics and specifically the difference between the spirit and the fact of business conduct, especially for businesses of size and correspondingly with market power which means they can do more of what they want.
Perhaps business ethics have always been highly variable (probably) but as market power is increasingly concentrated, this matters more. Free enterprise is often in conflict with ethics and the greater the prize the more ethics are discounted as the scale of the result justifies the means.
That is why regulation is vital. Over to you Ofcom.

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D Evans

If you tweet do tweet #VodafoneFail

I lost:

The agreed 24m deal cost
My bills on paper
Professional contractual communications – just txt me 4 now bredrin…
Accurate bills with no dumb rounding
My (once superb) inclusive Euro use allowance (now they want £3 a day)
Any nous to resolve the accepted iPhone 3GS reception issue – just timewasting & fobbing off till we tire.

Drop them like they are hot & Tweet about it etc.

Bunch of shysters – damage them back.

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Ro

I received this reply to my complaint letter to Vodafone re: the increase in their prices, today, in the form of an email from customer services which basically said that there will be an increase of 2.222% on my monthly line rental and:

‘ We are doing this keeping in line with the inflation. We have to do this as costs have risen and to keep providing with our services. We have done our best to limit these impacts to our customers and delay making the change as long as possible. Three, Orange & T-Mobile have put their prices up by larger amounts in the past 12 months and we have done our best to delay as long as possible and reduce the impact to our customers. I apologise but if you still wish to cancel the contract the early termination fee will be applicable’.

In other words ‘your stuck with this contract so pay up and shut up’

Remind me never to go with Vodafone again!!

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Bob Wells

Vodafone price hike! A result – P P & P ie Patience + Perserverance = Prevail by this method I got £20.00 credit to offset the hike. After being with them 14 years I will watch them like a hawke on renewal. I used the many excellent arguments outlined on this site and PP&P. Go fot it and good hunting. Bob

Following all your comments about what Vodafone’s customer service were saying, we’ve published a new Conversation: ‘Ofcom and the government forced us to increase prices’

Vodafone has given us a statement saying the price rise was down to them, not Ofcom or the government. Join the latest debate here: http://conversation.which.co.uk/consumer-rights/vodafone-price-increase-excuses-ofcom-government-customer-service/

Oh, and it happens to be the one year anniversary of Vodafone’s last price rise on ‘fixed’ contracts, so if you’d like to wish them a happy anniversary on Facebook, please do by sharing our lovely card.

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Kev

If it’s a “fixed” contract, and they are now raising prices, does that mean my contract is not “fixed” anymore, and can I end my contract with them, now they have changed it without my prior agreement . .

Sadly not, as the small print allows them to do it. Mobile companies that ‘fixed’ only means ‘fixed term’ not ‘fixed price’. If that’s not how you and me understand it, then something needs to change.

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Sarah

Its the big guys S**ting on the little ones, once again.

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Mar

Just a suggestion but if all of us as customers decided to cancel our direct debit on Nov 1st, they can’t feasibly take legal action against everyone and it would be a fantastic way to really dump them in it. I’m not sure how to get that kind of consensus but I think it would be great.

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devans

They offered me unlimited everything and a pound off the rental for the second mobile. Useless – we never go over existing allowances and ALREADY feel we pay for stuff we dont use to avoid punitive rates if we ever should go over. Who else buys goods/services in this default ‘more than you need’ way – mad.

I’m writing to cancel the contract – defaulting on paper bills and no Passport alone makes them contract numpties. Then we go Giff Gaff

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devans

I got a b txt response to my letter citing breach of contract (despite asking for a proper response to a proper letter) and they sent my PAC code and a cost of £300 for early termination. As they are trying to charge me over £150 more pa (deleting Passport etc) what would be my next best step do you think – another letter or the Ombudsman or something?

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Russell McCully

Please, please everybody who has signed up to this ‘fixed’ price contract, clearly breached by Vodafone, never ever again deal with these scums. Don’t be shafted twice and don’t buy into any future offers as you now know their word means squat. We will decide their fate now. I hope they go down the toilet.

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Ninja Hedgehog

Out of principle, I think that the price increase is unfair, especially given that you sign up to a fixed-term contract.

I know people are questioning whether or not this is a reason to get out of your contract with Vodafone and I’ve just found out that it IS!

I read through the Terms & Conditions and wrote a letter for my friend, who signed it and sent it off. 6 days later, he received a text message from Vodafone, saying they were sorry he was leaving and providing him with a PAC.

You’re more than welcome to use my letter, complete the blanks (or copy and paste) and sign it before sending it to Vodafone, if you want to end you contract.

It’s important to note that I’m not guaranteeing anything. All I’m doing is telling you that I wrote a letter, which my friend sent to Vodafone, who have accepted 30 days notice of cancellation. It may have been a one-off fluke and it may not work for you, but you’re more than welcome to try. If you do use my letter, it’s entirely your choice. I’m not responsible for anything at all.

http://www.ninjahedgehog.co.uk/?p=962

[Hello Ninja, we've had to remove a section of your comment as it breaks our guidelines. The link was broken, so we've popped in the correct one. Thanks, mods]

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ArgonautoftheSeas

...It’s like marrying someone and say, I will be faithful to you, but I have the right to have affairs!
How can a contract like this be legal? Surely, someone with an acumen in law could take this up to the courts?

@Vee

That’s settled English Contract law subject to
AND governed by exclusion or exemption
clauses applying…. nothing illegal I’m afraid,
and I wd not bet my money on litigating it or
testing its parameters in Court. (Chitty on
Contracts)

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stray_nutz

i have been with them for 14 months now and this has happened i was sold unlimited internet then 3 months down line i was told my trial ran out when i confirmed it was for the whole contract. trying to charge me 15 pounds extra a month, they didnt tell me for the first month. got that back then i stung a manager by getting him to agree to pay it then he found out how long left and tried to get out of it but i had him confirm calls are recorded. so i now get that free, but this increase is a joke yeah its 83p more a month thats not the point and im going to be going to a store to have a word!

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Graham

I’ve had one of these texts from Vodafone. It doesn’t tell me what my tariff increase will be, and checking the “My Account” website I can’t find any details of the increase either.
I pay by Direct Debit, and I understood that the terms of the Direct Debt Scheme require the charger to notify you of any change to the payment amounts. I have not been notified.
I called 191, and they very quickly offerred me a £4 credit – the Vodafone lady was on a poor line and sounded a long way away, and despite asking 3 times, I still could not hear, or understand, what the amount of my new tariff would be. I asked her to send me an e-mail setting it out, but the e-mail just confirms the £4 credit – I still don’t know what my new tariff will be.

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Bob Wells

A result! I read some of the excellent arguments on this site about Vodas price hike. I copied them to word doc put on my history ie “been with them man and boy etc” all very polite but stated that they were behaving like 3rd rate double glazing Co or even worse a Bank! and not like the world class, blue chip company I loved and cherished doing business with. I then went on their site and copied script to their complaints page on a daily basis sometimes thrice nightly. After 3 days their managers started phoning I repeated arguments, all very polite and patent and voila credit notes resulted. Thank you which and your contributors – Good hunting

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Brian Jones

I only signed up for my iphone 2 year contract 10 weeks ago and think its totally unethical (and morally wrong) for the company to increase my monthly charges after selling me a phone on the basis of a “FIXED PRICE CONTRACT” – to use their words!!!! However all I can do unless some legal all controlling body steps in to ban this practice; I must wait until my contract expires and drop using Vodophone for ever in the future. If enough people do this of course maybe this company will get the message!

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Celia Mason

This is a simple abuse of oligopoly power – and the knowledge that you can hide just about anything in the small print. Even if a consumer does find this clause and does disagree with it, what are they going to do? Renegotiate the contract? This should be outlawed as an unfair contract.

Fixed should mean fixed. I agree to pay them for 2 years, whatever happens to prices; they agree to keep the price the same. If I broke my side of the contract, we all know how they would enforce it. Consumers should have the same rights.

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grahamb

After three weeks of fighting with Vodafone customer sevices I have just received an email saying that they will refund my contract price increase. It was the usual “as a a valued customer and as a one off,” but its a success!! Their response to my complaint was to explain that it was only a 2.2% rise and only a small amount (70p per month in my case, but its the principle) I based my complaint on the fact that the term they were using to increase my contract price I considered to be an unfair condition. As they did not offer a resolution to my complaint I requested that they escalate to the next stage of the complaints procedure as I wished to take my complaint to arbitration and ultimately take it to Ofcom. After this e mail I received the offer to refund the price increase up to the end of my contract ( 14 months)
Just persevere and threaten to go to arbitration until they offer a resolution

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WeRememberPoorCR

I have a slightly different scenario to the above; Vodafone changed my whole contract without my knowledge or consent. Apparently they are rationalising tariffs as they have over 1500 of them…. I was told by Mr Manager that I had been sent a Text confirming they were terminating my contract and putting me on a new 12 month contract, not a letter or even an email, a Text !? I am sure they have that tied up in their T&C’s as well.

Mr Manager went to say ( reading from script ) that most customers have upgraded anyway so there were just a few left. Yes indeed! The majority of those few knew they had a good deal and wanted to keep it.

I mentioned the grief Vodafone are receiving online at the moment. He commented that nobody writes good things online only complaints….. Mmmm let me dwell on that for a moment..

The 12 month tariff that I been moved to bore no resemblance to my usage, as they just looked at the total spend not taking into account foreign usage. The loss of the Passport service is a big deal and has cost me money as I have been abroad using the phone.

Vodafone were totally intransigent with their position, ‘ take what they offer or have an immediate line termination’. Just to think I was contemplating moving my business phones to them!

All Vodafone needed to do was put me on a 30 day Tariff with the 12 month usage allowances. That would have equated (ish) to what I already had but no, they wanted the 12 month commitment, why? when I had been with them forever. No one has the discretion to do that anymore apparently……..

Now having had a brief look at Sim only tariffs from all the major providers, where is the competition? Whoever mentioned oligopoly above, you are correct.

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copesy

ive had the mid contract price hike on 2 vodafone mobiles. I find it absolutely outrageous to be perfectly honest. But whats even worse is the 3rd rate shoddy customer service that you are met with when trying to tackle the issue. Nobody wishes to speak to me about it, its all emails and texts, trotting out the same old nonsense of costs rising, well im sorry vodafone, but your business plan should incorporate projected costs over a 2 year period as a matter of course. Most self respecting businesses have a 5 year plan and excellent customer service, do i need to go on?!….

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Dick Elliot

It’s not just price hikes you need to look out for. Your fixed price contracts contain an Automatic Renewal Clause. Unless you give them 30 days notice in writing they will automatically change your contract over to a rolling contract at the end of the term and carry on charging you. When you object they will then detail the “early cancellation fees” you must pay. All earlier comments about grown up communication apply, they require written notification but no way are they going to write or email you saying they are about to put you on a new contract.

I am refusing to pay them any monies after my original contract end date (I had stopped using the account months before). Communications are becoming progressively more bloody minded. Let’s see how far they take it.

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d evans

Well I cost Vodafone over £350 as I fought them over changing a contract mid-contract and without my consent. However much they like to think a contract isn’t a contract most of us have a clear idea of what a contract is/means. Sock it to them.

I then went to Virgin on a SIM only deal for a cracking (and limited) £12 a month 1000 x mins & Mb & txt. Foreign use is unuseably expensive and I miss voicemail not ringing to tell me I have a message, but other than that it is FAR BETTER. You get Orange and TMobile networks and so I get HSDPA at my parents in N Wales rather than no data at all.

Vodafone think they are cleverer than us and better than the rest. They are neither. Treat them with contempt back.

Hi D Evans, can you tell us more about you getting £350 from Vodafone?

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d evans

I proved to them that changing my terms mid contract would have increased my bill by more than their ‘reasonable’ amount. This was mainly due to the loss of Passport – this made them stand out and was very useful to have an inclusive 25Mb data abroad, They culled it and so became an also ran.

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Chandrani

I used twin vodafone numbers for over long years.only last digit was different.but due to non recharge of one number timely,it was out of order and voda gave the number to another.can i get back the number again?if not then can i get nearest number of my choise?then how?

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Shane

I was in the middle of my contract and Vodafone didn’t even tell me they was putting the prices up so now i have to pay more because of this now ofcom i would like them to stop this happening when you should be on a fixed price or let u leave without pay a penny more

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Tim

This will be the new way of making the profit for Vodafone. They are selling a huge stake of Verizon for around £130 billion. Verizone paid them a big dividend every year. But for now on the company will not have much to profit from its business. For years they did not do much. Their service worsen every year. I left them a few month ago because they increased the tariff last year. It was principle, as they should not treat its customers like they can do what ever they can with them and I do not regret it. They could take money from people, its legal according their agreement small print, but not from me any more.

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