By Lutz Schüler, CEO of Virgin Media O2
Connectivity has never mattered more than it does today. From video calls and AI tools to streaming and gaming, we’re connected almost every minute of every day, and demand for fast, reliable mobile and broadband services continues to grow.
Perhaps surprisingly for services that are essential to modern life, people today are paying less for telecoms in real terms than they were five years ago and Britain has one of the strongest consumer protection regimes in the world. UK consumers are benefiting from a highly competitive market which offers some of the lowest prices in Europe, with telecoms accounting for less than 2% of household expenditure. This is while investment in modern digital infrastructure continues to rise and those investing face some of the highest costs in recent memory.
However, while this context and backdrop is very important, we know that in the current environment some households are struggling to afford their bills and want clarity so they can stay in control of their spending.
That’s why today we have signed the Government’s voluntary Telecoms Consumer Charter which clearly sets out a shared commitment between government and industry to deliver even greater outcomes for consumers – providing fairness and predictability while strengthening the support available for those on the lowest incomes.
Alongside new commitments, the Charter builds on a range of existing initiatives we have in place, like the low-cost broadband and mobile social tariffs we offer; data-free access to essential online services and help; and the National Databank which we pioneered with Good Things Foundation to combat data poverty by offering free mobile data to those in need.
It’s also important to address the topic of price rises. Given the investments we’re making and the market backdrop, raising prices for O2 customers by 8p a day is necessary, but not something that was taken lightly, and we’ve seen others across the industry increase their prices too. But I do accept that changing pricing terms for those already in a contract, while done transparently and in line with existing rules, dented customer trust for some. We have listened and learned from that decision and have committed to not changing the amount by which a customer’s monthly subscription price increases in-contract in future.
By signing this Charter, we’re doubling down on raising awareness of the support available for anyone struggling to pay and going further to ensure we’re always clear and transparent with customers on pricing so they’re empowered to make informed decisions about their services.
When it comes to the services we offer our customers, we’re not standing still. Alongside this commitment to transparency and fairness, we remain committed to continuing to invest as well.
Virgin Media O2 is one of the UK’s leading investors – committing around £2 billion a year to improve our networks and services. We’re building new fibre connections, expanding 4G and 5G coverage, boosting capacity in busy urban areas, and tackling persistent network pain points along railway lines, at airports, on motorways and in stadiums and arenas across the UK. These investments are crucial to helping the Government meet its own growth objectives and connectivity targets, and we continue to work closely to ensure the environment for infrastructure deployment is made as easy as possible.
Our commitment to continue investing while delivering a fair deal for consumers is a powerful combination. It ensures we’ll continue to support customers everyday while strengthening the UK’s digital backbone so that it’s fit for the technologies of today and tomorrow.
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