Orange Price Increased

So Orange sent me a text this morning stating that:
Hi, from Orange. We’re increasing the price of your monthly plan by 4.34% from 8 January 2012. For more information please visit orange.co.uk/planupdate
Other than the rather cheery greeting to pass on some bad news the text didn’t tell me why and so naturally annoyed me…clicking to their link I found this:
Why are Orange introducing these price rises?
We know that price increases are never welcomed by our customers. Unfortunately, with inflation at a 20 year high it has been necessary to increase our monthly service charges.
Can I cancel my contract because you’re increasing my monthly service charge?
No, our Pay Monthly terms and conditions allow us to increase charges by up to the RPI figure in any 12 month period. The increase in the price plan charges is less than the 5.4% rate of inflation as measured by the Retail Price Index (RPI) in October 2011.
We can increase prices at any time on giving proper notice. In this case, the increase is less than the current rate of inflation and our terms and conditions state that we can do this without giving you the right to cancel your contract without paying the disconnection fee.
You’ll find the details in section 4.3 and 15.1 here
This left me wondering several things
1 – How can Orange increase the price I pay?
2 – They never told me that (as I joined over the phone I wasn’t given a contract to sign or even told where to find a copy..perhaps an error on my part for not asking though)
So I phoned up Orange
After waiting 20 minutes to speak to their accounts department due to an unusually high volume of calls (perhaps a flurry of cross customers) I eventually spoke to a man, I calmly explained to him why I was upset by the charges and how unethical it was to do that to loyal customers and he basically told me tough.
With my contract coming to an end in February I thought I’d might as well try to leave so told him I’d do so and I was transferred…
The next person I spoke to was slightly more helpful. She informed me that the increases were due to government inflation increases and that in the past Orange had paid these for the customer but was no longer allowed to by the government. She also told me that Orange were however offering all customers effected a 5% discount for 6 months to offset this and that they would be informed next month by a letter.
Now I’m no business man but why raise your prices, tell your customers who thought they’d signed up for a set contract and pee them off only to send them a letter a month later to say ‘actually it’s ok…it’s on us!’?
Surely it would have made sense to announce both at the same time?
After realising I wasn’t going to get any further without having to spend £50 to get out of my contract and a further £20 to unlock my iPhone I gave up.
Ten minutes later I called back with a plan…
Mention the phrase ‘I’d like a PAC code’(code that allows you to take your number to another network) to any network provider and they usually become very nice and start offering you all sorts to stay.
So I tried that and explained that I was unhappy with my current price plan because I was paying for more than I was using but the other option was too little, explained that I wasn’t planning to upgrade my handset until the iPhone 5 was released and explained my upset at the price increases and Orange have now put me onto a sim-only, one month at a time plan costing me £15 less a month.
On top of that the new plan effectively ends my contract in January rather than February if I so desire.
So…for the cost of a few inclusive minutes I think I did quite well….however I have also made a complain to Ofcom about Orange because I think the clause that allows phone networks to raise your prices in the middle of the contract is ridiculous and unethical and that if it’s going to exist that it should be made a lot clearer when you sign up.
Top Tips!
Finally if you’re an Orange customer also unhappy here’s some tips:
Ring up and complain…feel free to tell them you’ll be complaining to Ofcom…maybe even mention you’ll be tweeting about them!
Don’t be afraid to threaten to leave…even if you get a PAC code you don’t have to use it but asking for one can help you get a better deal
Ask them to confirm the 5% discount if the price hike is all you’re bothered about…the more people who complain the more likely they will be to announce the discount sooner.
Further Reading
8 Years ago yesterday a band I barely knew played their last show in Denver, Colorado. That band was Five Iron Frenzy and in the last 8 years they have become one of my favourite bands and had a huge impact on my life. Their mix of fun ska-punk music blended with a mix of beautifully profound or cleverly funny lyrics made them such a good band to listen to.
Regular readers of my blog will know that a desire to see the church change and to see more young people through the doors are things that I’m passionate about.
Today the Fairtrade foundation and Mars chocolates have made the exciting announcement that next year Maltesers will go Fairtrade.
If you follow me on
As I mentioned a couple of days ago I’ve been pretty excited for the release of ‘The King Blues’ new album ‘Punk and Poetry’ which was released yesterday and proving that my HMV pre-order was worthwhile the album turned up yesterday morning and it’s been on in the car, office and living room and I’ve managed to listed to it several times over.