A mobile phone price increase mid-contract is never good news, but it does happen. That’s why it’s important to know your rights as a customer – and why mobile phone prices might increase in the first place.
Mobile phone price increase mid-contract
Unfortunately, phone bill increases happen fairly often. No matter which network provider you’re with, it’s likely you’ll face some kind of small phone price increase once a year. That’s because, like any company that supplies a product or service, network providers have to cover increasing costs. Mobile phones are continually advancing in terms of technology, features and designs, and inflation is a key factor too. These costs eventually work their way back to the customer in the form of a slight price increase.
Can mobile phone companies increase contract prices mid-contract?
In 2023, yearly mid-contract price rises have been larger than normal due to the high rate of inflation.
High inflation means high price rises for mobile phone customers. So, while you’d usually see a mobile phone price increase of 3% or 4%, some increases this year have been nearer 12%.
Your phone contract will mention details of price rises which means that, legally, your network provider can increase costs yearly. As you’ve signed this contract, it means you can’t cancel early without having to pay a cancellation charge.
The only way you can walk away from mobile phone contracts without incurring a cost is if your agreement is coming to an end. But there are things you can do to keep costs down during you contract period, and you do have rights!
How to reduce phone contract costs
Because mobile price rises are always likely to happen once a year, it makes sense to try to keep some money aside to cover any increases.
Thinking ahead can also help you save, so we recommend you compare as many contracts as possible when getting a new phone or signing a new contract. Here are a few more ideas that might help:
Compare, compare, compare. When looking for a new phone or mobile contract, be sure to compare as many deals as possible.
Look closely at the terms to find out how much you’d be paying each month, and what you’d get in return as a customer. What kinds of deals are available? Do you get any extras thrown in?
Also, ask yourself if you really need that much data each month, or that much storage space on your handset. And do you really need all the latest features, or would you be perfectly happy with a slightly older model?Choose a refurbished phone. Why should you choose refurbished tech? Well, you can save money by buying a refurbished mobile phone rather than a brand new one. There are some great deals on used or refurbished mobile phones at Carphone Warehouse and Currys.
Used phones, purchased privately from a previous owner, can certainly save you a lot of money – but they don’t have the guarantee of quality that a refurbished phone does. Refurbished phones usually come direct from the manufacturer or retailer ‘as new’ or are sold according to recognised grades of quality - so you have a better idea of what you’re getting.
Unlike a used phone bought privately, you’ll get a 12-month guarantee on all refurbished models bought at Carphone Warehouse or Currys.Keep a beady eye on your data usage. You should closely monitor how much data you use each month, and try not to use data needlessly. Use Wi-Fi wherever and whenever you can, especially when downloading media content, updating apps or refreshing your email inbox. If you have someone you need to speak to, use a free app like WhatsApp along with a Wi-Fi connection.
Here’s a handy article where you can find out how much mobile date you need.
Can you negotiate mobile phone contracts?
Yes, you can negotiate your monthly phone contract, but only when it’s time to renew. You cannot change deals or switch networks during the middle of your contract!
Ofcom rules state that your mobile phone provider must let you know when your contract is coming to an end, by letter, email or text. You can then ask if they can add you to a contract more suited to your needs, or you can switch to a new network provider.
Switching mobile networks
If you want to switch mobile networks you’ll have to wait until your current contract comes to an end. It’s possible to change a phone contract earlier, but you have to pay off the remainder of your current agreement, which could be quite expensive.
If you’ve reached the end of your contract and want to keep your current number with a new provider, you’ll need to obtain a PAC code (Porting Authorisation Code). Simply call your existing provider to get the code, or text PAC to 65075. Then contact your new provider to give them the code. Simple as that.
Compare mobile phone and SIM only deals
If you’re looking to find a better deal, you should take some time to compare pay monthly phones and SIM only deals.
If you compare SIM only contracts or search for a SIM only upgrade, you can save you money by keeping your current phone, rather than paying for a new contract phone. If you do this, you’ll only be paying for data, calls and texts.
Switching to SIM only or pre-paid plans
A SIM only deal or pre-paid phone plan (where you buy a SIM card with a set amount of data, calls and texts for a fixed price) gives you the flexibility to choose your network and find the best deal to suit you, without having to pay for a handset.
It’s definitely worth taking the time to compare SIM only deals, but remember - if you’re thinking of switching mobile phone providers mid- contract, you’ll have to pay for the ‘privilege’. Try to be patient and wait until it ends!
FAQs
How to switch from contract to pay as you go
If you’d like to switch from a pay monthly phone contract to a PAYG (pay as you go) option instead, wait until your contract period is due to expire. Then find a network provider you’re happy with, and that has decent network coverage in your area.
If you want to keep your current number, you’ll need to get a PAC code from your current network provider and pass it on to your new one. You can get this by texting PAC to 65075.
Can you cancel mobile contract if price increases?
Not normally, no. An annual mobile price rise in line with inflation is written into your mobile phone contract and when signing up, you’re saying that agree to them.
Be sure to check your contract carefully. If it doesn’t include a price rise agreement (although this is unlikely), you might be able to cancel.
Or, if the mobile price rises are higher than it states in your terms, the law requires that your network gives you 30 days’ notice. You can cancel your contract during this notice period - but only then.
Do I need to cancel my phone before switching?
Yes, you should always cancel your current contract mobile phone before switching to a new network provider. If you don’t your current contract will simply roll over and start again, meaning you could be locked back in for another 12- or 24-month period - depending on what you originally signed up for.
If you want to keep your current mobile phone number, you can easily do this by getting hold of your PAC number prior to cancelling. Text PAC to 65075 and pass the code onto your new network provider once you receive it. Your old mobile contract will then be cancelled without you having to do anything else.
Need more help?
Thinking of getting a new mobile phone contract? Here’s a handy article explaining the difference between pay monthly and pay as you go phone contracts. And if you’re thinking about getting a new phone, here’s the best time to buy a mobile phone.
