Major mobile provider with 5million customers to axe ‘sneaky’ price hikes ahead of huge rule change
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A MAJOR mobile network is ditching confusing mid-contract price rises from April 2025. Millions of Tesco Mobile customers will no longer have inflation-linked price rises applied to their pay monthly and sim-only contracts. The mobile network, which caters to over five million customers, used to increase prices by the consumer price index (CPI) of inflation in December + 3.9%.
![[This change comes in response to an Ofcom consultation that emphasised the need for transparency in mid-contract price increases]](https://www.thesun.co.uk/wp-content/uploads/2024/12/2x2b6gp-tesco-mobile-5g-pay-956859779.jpg?strip=all&w=960)
However, customers who take out a new broadband or mobile phone contract from December 17 will see their prices rise by a set number of pounds and pence next April. If you haven't renewed after this date, you'll still see your prices rise to inflation.
This change comes in response to an Ofcom consultation that emphasised the need for transparency in mid-contract price increases. From January 17, 2025, phone, broadband, and pay-TV providers will be prohibited from applying inflation-linked price rises.
However, several telecom firms, including Vodafone, BT, EE, and Plusnet, have already announced these changes ahead of time. Tesco argues that its new "proportional" model means price rises will be based on the customer's basic monthly tariff, promising a fairer deal for all.
The mobile network said that someone on a £14.99 a month deal would see their monthly contract price increase by 90p in April. Customers on a £30 a month deal would see their basic monthly price increase by £1.80 from the same date. These increases suggest that the typical cost of a customer's contract will rise 6% from April 2025.
