Ofcom Criticizes O2 Over Unexpected UK Mobile Price Hikes Affecting 15 Million Customers

The UK telecoms regulator Ofcom has expressed disappointment with O2 for increasing mobile contract prices beyond what was originally promised to customers, a move that undermines recent rules aimed at preventing unexpected mid-contract price hikes. These rules, introduced earlier in 2025, require telecom companies to clearly state any future price increases in pounds and pence at the point of sale to provide customers with certainty and transparency. O2's decision to raise the annual price hike from £1.80 to £2.50 per month affects up to 15 million customers and has drawn criticism from consumer advocate Martin Lewis, who urged customers to consider switching providers. While O2 is allowing customers to exit contracts penalty-free within 30 days of notification, Ofcom views the price hike as contrary to the spirit of its regulations and has reminded all major mobile operators of their obligations to treat customers fairly. The controversy highlights ongoing tensions in the telecom sector over pricing practices, especially as inflation-linked rises have been banned and annual increases are now fixed but can still penalize customers on cheaper plans. Ofcom's response so far has been limited to formal criticism and communications with major operators, emphasizing the need for fair treatment and clearer pricing commitments.