Introducing our new “pounds and pence” pricing structure

Blog from Christian Hindennach, Virgin Media O2’s Chief Commercial Officer  

As a nation, we rely on connectivity more than ever before. Look around the train or bus on your next journey, and there’s a good chance at least nine in 10 of your fellow passengers will be on their phone or laptop – messaging friends or family, scrolling through social media, sending emails or streaming video and audio content. All of this everyday activity, which is so fundamental to much of modern life, is powered by the connectivity operators like Virgin Media O2 provide.  

It is against this backdrop of ever-growing demand for data – with usage on our fixed and mobile networks up by 13% and 26% respectively last year – that we include an annual price increase in customers’ contracts. While we appreciate they are never welcome, they are necessary, and any increase on a customer’s bill is greatly outweighed by the £5 million we invest every single day in our networks and services to meet increased demand for fast and reliable connectivity.  

We are always clear and transparent about any price changes, and we listen carefully to customers’ feedback. That is why today, in line with new Ofcom rules, we are announcing that we’re changing how we communicate and implement price increases for our customers. In future, any price changes included in a customer’s contract will be specified prominently in pounds and pence, giving customers even greater certainty about how their bills may change over the course of their contract.  

Virgin Media 

New and re-contracting Virgin Media broadband customers will receive a flat price increase each year, effective in April, of £3.50 a month – equivalent to less than 12p a day. This will not apply to customers taking social tariffs, who will continue to be exempt from price changes as part of our ongoing efforts to support those who need it most.  

O2 

O2 customers will see the cost of their airtime plans increase by £1.80 a month – around 6p a day – effective each April. This will continue to only apply to airtime plans, with the cost of handset repayments frozen. Some other mobile providers have announced a tiered approach and highlighted increases of “from £1” in public, but many of their customers will see rises of £1.80 or more. On the contrary, we are taking a fully open and transparent approach with our customers so everyone reading this will know exactly how their bills will change.  

Excellent value 

Our approach means that customers’ monthly bills are guaranteed to increase by less than the cost of a takeaway coffee or a sandwich, representing outstanding value at a time when customers are using both our fixed and mobile networks more than ever before.  

Indeed, recent research from independent analysts Assembly found that the cost of a typical bundle of telecoms services in the UK remains amongst the lowest in Europe, and half the price of the US; that the UK’s most common fixed broadband speed tier is no more expensive than it was seven years ago; and that the price of 5GB of mobile data in the UK is a third cheaper than in 2017.  

Additional support for customers who need it most 

We are proud to have supported our customers through the rising cost of living over recent years, with a comprehensive, industry-leading support package in place to help anyone struggling with their bills.   

We were one of the first providers to introduce a low-cost social broadband tariff – Essential broadband – offering reliable and affordable (£12.50 a month) connectivity and entertainment for those receiving Universal Credit. We later introduced Essential broadband plus, delivering faster speeds for just £20 a month, and extended eligibility so millions more people could benefit. Customers taking these social tariffs, and Talk Protected landline customers, will continue to be exempt from price changes. 

Earlier this year we launched a new mobile social tariff, Essential Plan, which costs just £10 a month and comes with 10GB of data plus unlimited calls and texts. Available to customers in receipt of a range of benefits, it is designed to help people on low incomes stay connected, and all Essential Plan customers will be exempt from any price increases.  

We know that for some people, even these affordable social tariffs are a stretch. So we also continue to provide support though the National Databank, which we pioneered in 2021. Operating like a food bank for mobile data, it tackles digital exclusion by providing free connectivity to those who need it.  

A fair and transparent approach 

We are taking a fully transparent, fair and proportionate approach to future price rises, protecting our most vulnerable customers from any changes and providing greater certainty about how bills will change in future.   

This will enable us to sustain record levels of investment in both our fixed and mobile networks which, in turn, will ensure our customers continue to benefit from the fast and reliable services that matter to them.