Why are EE increasing the charges for Mobile SIMs by 25%

[sfutcher]

I've just received a letter saying the same.

Previously the increases were fixed at Consumer Price Index (CPI) rate of inflation published in January, plus 3.9%.
There is no way that equates to a 25% increase - are EE just hoping that no-one will notice?

[sfutcher]

They'll definitely succeed with that strategy if they continue increasing their prices by 25% each year.

[cassmtf]

EE might say it's all OFCOM. £2.50 increase really doesn't make any sense for cheap SIM only plans. OFCOM might change this again in few years to inflation based or something but then it's too late for us. Simply no point in being a loyal customer for years. So just keep changing every 12 months if possible. I believe soon or later we can start seeing some reasonable 12 months plans from all providers.

[XRaySpeX · Accepted solution]

@sfutcher : It's not calculated as a %age change. It's a fixed £2.50 pm for each SIM. See About annual price changes

[cassmtf]

He simply represents £2.50 in % terms as 25% increase in his case.

[Minkey1]

@cassmtf 

Perhaps bcs in his case, it is.

My SIMs start at £7pm.

Thanks to the geniuses at Ofcom, I’m subsidising those who get a phone+airtime on a contract.

Outstanding.

[bristolian]

When mid-contract price rises were first allowed by Ofcom, they were percentage-based thus lower-priced plans had a lower increase. Then the inflation-crisis hit and price-rises breached double-figures, causing mass complaints.

There has been a general trend across the industry since then, towards "simplicity" that is best achieved by fixed-price increases, also achieving the price certainty over a 2year minimum-term that consumers generally want.

The negative-side of fixed-price increases is that they tend to be a higher-percentage on lower-priced plans, as in your case. Whatever the industry or individual operators do, is likely to cause upset somewhere.

[garybs29]

@Minkey1 given the price increase on a flex pay airtime is the same (device on 0% credit agreement) & a non flex pay handset increases £4 I don't think you're actually subsidising them!

[Minkey1]

@garybs29 

So I’m not paying the same amount on my £6pm plan as someone paying £60pm for an all singing and dancing plan?

OK.