Telecommunications regular, Ofcom, has granted mobile phone users the right to leave their contracts at any point if their network increases the ‘fixed’ price during their contract.
As part of the ruling, Ofcom announced that all mobile phone networks must inform their customers about price hikes at least 30 days before the planned changes to their phone contracts.
Customers will then have the opportunity to leave the network, and thus terminate their contract, without facing a penalty for leaving.
Although the new rules won’t stop networks from raising the prices mid-contract, it will allow phone users to decide for themselves if they are willing to pay the increased charges.
Although users have the right to leave their service providers mid-contract at present, they often face a costly penalty if they do choose to exit their contract early.
Some observers have also agreed that network providers might think twice about implementing price increases in case their customers choose to swap providers a few months into their 24 month contract.
Written by Charlotte Kertrestel