Mobile Phone RPI Increases- EE
Mobile Phone RPI Increases- EE
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Discussion

surveyor_101

Original Poster:

5,069 posts

208 months

Thursday 15th February 2018
quotequote all
Anyone mind boggled as to why Ofcom allow EE to increase contract prices by 4.1%- for contracts that have been entered into as early as last month.

The increase is applied to contracts 12 or even after 6 months and over I don't have a massive issue but all of our mobile products are in my name.

I have several lines with EE and one I only upgraded last month to be hit with an increase so soon and so high, the other was late Oct 17 again they have taken the 4.1% which is not comparable with 2.6% that O2 and imposing.

The 4.1% was the peak in Dec 17 and EE are using that as a maximum.

So after 6 or 12 months an increase of average RPI doesn't seem unreasonable but we have lines within the 3 months that are all being hit.

The contract terms on website are not clear and I can't find the document showing the RPI increases other than a reference to clause.



Edited by surveyor_101 on Thursday 15th February 09:49


Edited by surveyor_101 on Thursday 15th February 09:50

PurpleMoonlight

22,362 posts

186 months

Thursday 15th February 2018
quotequote all
Presumably it's in the contract you agreed to.

red997

1,304 posts

238 months

Thursday 15th February 2018
quotequote all
This is from EE:

The RPI increase will take effect on 30th March 2018. We used the Retail Price Index (RPI) figure of 4.1%. This is a measure of the increase in prices for consumers and businesses on average across the country over the last 12 months. The RPI figure was announced on the 16th of January 2018 and is based on data from the Office of National Statistics. This is the RPI monthly figure for December not a quarterly figure and is not a prediction, it is an actual increase comparing Dec 2016 with Dec 2017

waynecyclist

14,682 posts

143 months

Thursday 15th February 2018
quotequote all
The mind boggles with EE at times, they increased all the prices on broadband late last November, I was able to cancel my contact and go elsewhere with nothing more to pay.

Then they put up all mobile prices.

Tyre Smoke

23,018 posts

290 months

Thursday 15th February 2018
quotequote all
Struggling to see your problem here, except for the fact you failed to read the contract properly before you signed it, apparently.

EE clearly state that you will pay an increase and detail how it's calculated - see the other poster's comment. It's on every contract. It's not EE at fault here as far as I can tell.

surveyor_101

Original Poster:

5,069 posts

208 months

Thursday 15th February 2018
quotequote all
Tyre Smoke said:
Struggling to see your problem here, except for the fact you failed to read the contract properly before you signed it, apparently.

EE clearly state that you will pay an increase and detail how it's calculated - see the other poster's comment. It's on every contract. It's not EE at fault here as far as I can tell.
I did read but it wasn't clear that it applied to contracts upgrades in the last 60 days.

My point was why do OFCOM allow them to increase a contract I took 30 days ago. Most other industries would do annual or bi-annual.

Also, EE on this occasion has chosen to go for the highest peak in RPI in the last 12 months.


Apparently, the cut-off point if 7th Feb 18.

My point is not so much that EE have gone and done the 4.1% although they have gone full wack.

My main issue is why are they allowed to increase contracts that are on 30 days old!



Tyre Smoke

23,018 posts

290 months

Thursday 15th February 2018
quotequote all
Because it says they can in their contract.

It may seem unfair, but it's what you signed up for.

havoc

33,382 posts

264 months

Thursday 15th February 2018
quotequote all
My question is why people are still with EE at all? They're probably the most corporate/disinterested of the lot now (Vodafone possible excepted).

I was with Orange since (I think) 1999 or 2000 - they were the best of the Big-4 and the vast majority of the time showed good customer service and had people on the end of the phone that seemed to want to help.

...until the merger, when it all went downhill and hasn't come back - I finally (far too late) left EE about a year ago, after far too many customer-service screw-ups and their utter failure to deal with a faulty phone still in-contract.


I'm now paying significantly less, both for the service and for the phone, and I don't have to deal with them anymore.

surveyor_101

Original Poster:

5,069 posts

208 months

Thursday 15th February 2018
quotequote all
Tyre Smoke said:
Because it says they can in their contract.

It may seem unfair, but it's what you signed up for.
Yes I appreciate their contract says that, why does Ofcom allow it.

What other industry can you issue a charge increased with 45 days of entering into a contract based on RPI?

If upgraded on 20th Jan 18, EE were already aware of the peak of RPI 4.1% so why in Jan 18 were their deals not adjusted?

Anyone looked into material determent?

Russ T Bolt

1,760 posts

312 months

Thursday 15th February 2018
quotequote all
I thought EE put their prices up by RPI once a year at the end of March. Don't they also declare which month's figure would dictate the increase ?

Why did you enter in to a contract that was about to have the annual increase applied without considering it ?

Camelot1971

2,851 posts

195 months

Thursday 15th February 2018
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I've found these days it's much more cost effective to buy a phone outright and then have a pay monthly sim. I'll never ever go back to 24 month contracts.

HantsRat

2,409 posts

137 months

Friday 16th February 2018
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Camelot1971 said:
I've found these days it's much more cost effective to buy a phone outright and then have a pay monthly sim. I'll never ever go back to 24 month contracts.
This.

Just did a rough calculation on a new iPhone X. Total cost over 24 months on contract was £1,900. Total cost buying phone outright from John lewis and £20 pay monthly SIM over 24 months was £1500.

Why people still take out contracts and throw away money i'll never know.

Even if you don't have the cash, put the phone on a 0% credit card. Pay off every month and you'll still save £4/500 odd quid over the period.

surveyor_101

Original Poster:

5,069 posts

208 months

Friday 16th February 2018
quotequote all
Russ T Bolt said:
I thought EE put their prices up by RPI once a year at the end of March. Don't they also declare which month's figure would dictate the increase ?

Why did you enter in to a contract that was about to have the annual increase applied without considering it ?
I was told the ipad deal I took on the 20th Jan would not be affected.

I have never taken a contract or upgrade within 6 months of march.


People don't seem GRASP yes there contract says they can but it's not clear to what it applies.

MY POINT IS DO WE THINK OFCOM SHOULD IMPOSE A 6 OR 12 MONTH CLAUSE?

As in most industries, you can't within 30 days increased a fix costs agreement such as a lease or rental in most cases you would have to do 12 months under the agreement before the price can be reviewed.



Edited by surveyor_101 on Friday 16th February 09:41

spikyone

1,912 posts

129 months

Friday 16th February 2018
quotequote all
I'm amazed at the number of people saying "it's in the contract, so suck it up". Regardless of what's in the contract, putting up the price (twice, usually, given the proliferation of 24-month contracts nowadays) mid-term by some amount that's not known by either side at the initiation of the contract is just piss-poor.

It seems we now live in a world where some bright spark at one company works out a new way to screw money out of its customers, and all their competitors follow suit as quickly as possible rather than set themselves out as an alternative, resulting in a race to the bottom that benefits no-one. I call it "the Ryanair effect". Isn't modern life great?

havoc

33,382 posts

264 months

Friday 16th February 2018
quotequote all
spikyone said:
Isn't modern life great?
No.

Putting my grumpy-old-bugger head on for a minute, I'm noticing a significant increase over the last several years in 'pressure to deliver' (i.e. here, take more work / do it quicker / do it cheaper).

Doesn't matter what / where / how - it's everywhere, and the only people that benefit are:-
- End consumers through lower prices (apparently) - but that's us, plus the retired (who didn't have as much of this pressure), plus the workshy and the public-sector that don't have this pressure...so really why are we making all our lives collectively more miserable?!?
- Owners/shareholders*. Again, why are we all making our lives collectively more miserable?!?




* You may have noticed the significant increase in both income and wealth inequality since the 2007 recession. I will refrain from joining the very-obvious dots...

codenamecueball

734 posts

118 months

Friday 16th February 2018
quotequote all
HantsRat said:
This.

Just did a rough calculation on a new iPhone X. Total cost over 24 months on contract was £1,900. Total cost buying phone outright from John lewis and £20 pay monthly SIM over 24 months was £1500.

Why people still take out contracts and throw away money i'll never know.

Even if you don't have the cash, put the phone on a 0% credit card. Pay off every month and you'll still save £4/500 odd quid over the period.
No need for the card - apple offer 0% if you pop into store to get it.

surveyor_101

Original Poster:

5,069 posts

208 months

Friday 16th February 2018
quotequote all
spikyone said:
I'm amazed at the number of people saying "it's in the contract, so suck it up". Regardless of what's in the contract, putting up the price (twice, usually, given the proliferation of 24-month contracts nowadays) mid-term by some amount that's not known by either side at the initiation of the contract is just piss-poor.

It seems we now live in a world where some bright spark at one company works out a new way to screw money out of its customers, and all their competitors follow suit as quickly as possible rather than set themselves out as an alternative, resulting in a race to the bottom that benefits no-one. I call it "the Ryanair effect". Isn't modern life great?


I agree every 12 months they can review pricing and have Rpi average of the past 12months,


captain_cynic

17,312 posts

124 months

Friday 16th February 2018
quotequote all
havoc said:
My question is why people are still with EE at all? They're probably the most corporate/disinterested of the lot now (Vodafone possible excepted).
So the question is, who would you recommend?

I dumped EE because they made PAYG a complete pain to use, it just became too difficult to add credit. I am looking at doing the same to Vodafone for the same reason.

I was with GiffGaff before, but it was horribly slow at times.

surveyor_101

Original Poster:

5,069 posts

208 months

Friday 16th February 2018
quotequote all
captain_cynic said:
So the question is, who would you recommend?

I dumped EE because they made PAYG a complete pain to use, it just became too difficult to add credit. I am looking at doing the same to Vodafone for the same reason.

I was with GiffGaff before, but it was horribly slow at times.
Tried giffgaff and didnt get on with it!

O2 seems good but again 2.6% increase.

ASDA which EE as well I am going to do a speed test as they may not get the same data speed.

Tesco mobile which is o2.

The benefit with o2 refresh is the device plan is not RPI link only my airtime deal so I only pay 2.6% on the £7.00 a month airtime were as EE would on hit the £34 a month contract.

cuprabob

19,631 posts

243 months

Friday 16th February 2018
quotequote all
You refer to 2.6% for O2 but it was announced on Tuesday that O2 would be raising prices by 4% from April. I assume the 2.6% you refer to was the 2017 increase?