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Orange and T-Mobile to hike contract prices from April

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Orange and T-Mobile to hike contract prices from April

Orange and T-Mobile customers face an imminent price rise on their pay monthly tariffs, parent company EE has confirmed.

EE will bump up the monthly outlay of existing fixed-term contracts on Orange from April 10th and from May 9th on T-Mobile, citing “rising business costs” as the reason behind the move.

Orange T-Mobile logo (in-article image)

The increase will equate to around 70p a month – or, as EE puts it - “about the cost of a can of baked beans”. We’re not sure the networks’ 5.5 million subscribers will quite see it the same way though.

EE said in a statement: "We know prices rises are never great news, but we always aim to offer great value to our customers as well as the best service on the UK's biggest network.”

It explained that mid-contract price rises are calculated by the same rate as the Retail Prices Index and are stipulated in the terms and conditions when customers sign up to a contract, which they can cancel within 14 days.

The mounting business costs EE is referring to can probably be attributed to its merger of Orange and T-Mobile and the launch of the UK’s first ever 4G network last November.

Orange previously raised the cost of its contracts by 4.34 per cent in January 2013, while T-Mobile raised its prices by 3.7 per cent in May 2012.

An Orange spokesperson said: "Due to inflation, which directly affects the costs of running our business, we've had to re-evaluate our prices and introduce an increase.”

It’s estimated that the latest price rise will raise £52 million for EE.

Are you a T-Mobile or Orange customer affected by this increase? Let us know what you think in the comments section below.

Via:

The Guardian

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