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O2 raises prices, won't let you cancel contract

O2 is adding 3.2 per cent to your monthly bill from February next year, but the small print forbids you from breaking your contract.

O2 is putting up its prices. The oxygenated network is adding 3.2 per cent to the monthly bill of every customer in February next year -- but the small print means you can't break your contract.

"We've held off putting our tariff prices up for as long as possible, even when our competitors raised theirs", says O2. "But now, because of inflation, we need to change the price of your tariff."

Curse you, inflation! The increase is a 3.2 per cent hike on your line rental, the flat fee you pay each month. So for example, if you pay £20 per month your new bill will be £20.64. If your bill is currently £30 per month, your new bill will be £30.96.

Texts, calls and minutes still cost the same and your allowances aren't changing. Mobile broadband deals are unaffected. The changes come into effect on 28 February 2013.

To see how your bill will change, type in what you currently pay to O2's price change calculator, which will tell you how much your new bill will be.

O2 has twice suffered major network outages this year, and has promised to invest £10m into the network. But if this price hike is the last straw, there's no escaping your contract. 

O2 points to clause 5 of your contract's terms and conditions, which specifies that the network is allowed to change prices from time to time, as long as you get at least 30 days notice. As it's in the Ts and Cs of the deal you signed, you won't be able to use the price hike as an excuse to get out of your contract without paying a fee -- probably the total amount you would have paid over the remainder of your contract.

What do you think of O2's price hike? Is your network value for money? Tell me your thoughts in the comments or on our Facebook page.