Orange put up contract prices just enough to avoid customer desertion

28 November 2011

Bitterwallet - Orange logo Good old Orange. It’s been a mysteriously long time since they’ve upset their customers, but here they are with a price rise for existing customers. And OBVIOUSLY they’ve made sure that the rise is small enough so that no one will have the legal right to cancel their contracts.

Pay monthly customers will soon see a 4.34% rise in their price plan, and as it’s below the retail price index of inflation (currently 5.4%) Orange users won’t be able to cancel. Orange’s T&Cs allow them to raise prices in line with inflation every 12 months.

Obviously, there hasn’t been a positive response to the news from customers, with some sustained outpouring of mild outrage on various popular social networks. Meanwhile Ofcom have issued an interesting statement about it all, suggesting that customers complain to Orange about the price rise, without saying that the changes cause the ‘material detriment’ that is required to justify a cancellation.

If you’re an Orange customer, you can work out how much more of your cash you’ll be giving them each month with this handy tool that they’ve bunged up on their website.

[Which!]

TOPICS:   High Street News

38 comments

  • Jan
    Wankers
  • bob
    Fuckers
  • bob
    My contract ends next month you fuckers
  • Sawyer
    Will there be an accompanying 4.34% increase in their coverage? Thought not.
  • nobel h.
    Thats bloody great - its no to bad if you have one mobile with orange and only paying the minimum contract. Me I have six of the crap things all on dolphin 35. Thats £35 per month per phone. Thats another bloody load on my already suffering business. Orange already make a stupid amount of profit and lay people of so that they can make more. Why don't they just be sensible and give all of there customers a reduction.
  • Brian's U.
    Change providers as there are so many out there. Simples.
  • Fanny L.
    Jesus its a smidge over £2 if you are on a £50 contract. Inflation is what it is, i bet when you get paid your private sector yearly raise you dont complain
  • Ex F.
    I've been planning a departure from orange for a while. This is just the final nail in the coffin.
  • "MACKENZIE"
    "MACKENZIE" says that you shouldn't have signed up to a contract with terms in you didn't like. There are plenty of other options out there.
  • Bagpuss
    Aaaah good ol' Orange. Reminds of when they tried this about 2 years ago when they put up prices by more than the RPI, I like many others left in droves even though they tried to stop me/us. Eventually so many people left they abandoned the whole debacle, although I'd managed to escape. Vote with your feet.
  • bogbrush
    There is no such body as the "Central Statistical Office" Orange mention in 4.3.
  • DingDangDo
    agree with "bogbrush" then CSO was superceeded by the ONS on 1st April 1996. Anyone gonna try their hand with the cancellation department with this one?
  • Late
    My contract goes up from £10.21 to £10.64 - no complaints here. Aside from a 21p increase when the VAT rate last changed, I believe this is the only time they've ever increased my charges, and I've been with them for over ten years. 6.4% increase in a decade? Wish petrol prices only went up that much.. :( Blimey - I sound like a salesman for the company. They should give me a commission or something. Perhaps knock £10.64 off my monthly bill, to bring my fees down to the amount I pay for my two T-Mobile contracts ;)
  • TimB
    Dear Orange, Due to inflation, my money no longer buys as much as it used to. Therefore, I'm reducing your payments by 4%. Thanks for understanding. That should work, right?
  • Zuki
    Sure it's only a small rise under inflation. Just on the principle that if I have a 24 month contract they should hold the price for the full 24 months before asking for handouts for shareholders, I think I will be taking up a contract with another provider at the end of its term. Adios Orange
  • Richard
    I agree with Zuki, you sign up to a contract with a minimum term advertised at x amount per month. In my opinion the payments should stay at x amount a month for the duration of the minimum term. Sure if they want to increase the price of new contracts then go ahead but I think it's unfair to change the price of an existing contract (regardless of whether their terms allow them or not)
  • Nobel H.
    Like it TimB and its a good idea. Those of you defending the increase don't realise, it's the monthly bill total thats going up not just the monthly line rental.
  • Nobel H.
    I have to agree if you take out a contract, then a contract has to be fair to both sides. As we agreed to pay a monthly amount for a phone contract for a set amount then thats the amount we should pay for the duration of the term. You cant lease a car and half way through the term be told that the price is going up due to inflation, you simply tell them to stuff it and go somewhere else. But you cant do that with orange because you are locked in to the contract for the duration.
  • Louise
    My price plan is also due to go up and on a £40 a month tariff this equates to around £1.40... surely not worth getting in a tizz over? Unfortunately, inflation is a fact of life in the society that we live in and from the research that I have conducted, Orange could have enforced this price increase every single year, but have previously absorbed the costs, only passing them on now, surely a good deal for their customers? It may be all well and good to call them up and "give them what for", but surely it is better to remember that it is the company that has enforced this policy, not the human beings on the other end of the phone and whilst I am sure they are paid well enough to listen, there really is nothing they can do, so is there really any point in taking this out on them and potentially spoiling their day! As for canceling the direct debit, the joke would be on you - the bills would keep coming, the phone would be cut off and eventually the account would default and be passed on to a debt collection agency, resulting in legal action. All in all you would have to pay the same amount, but without the use of the phone and even an excellent credit rating would be destroyed. As for triumphing over Orange in court - extremely unlikely as it is legal. It is there in black and white in the Ts and Cs, that you chose not to read the small print is entirely at your own discretion and therefore your own responsibility . All in all, this seems like just another excuse for the Great British Public to have a good old moan, when they are bored of complaining about the weather. At the end of the day, the price increase amounts to less per month as a drink in the local pub, when faced with issues such as the Government's deficit, famine in Africa and the British weather, surely it pales in comparison? Or perhaps it is just Orange's way of getting us to cut down on that extra drink... P. S. Nobel Hobler - it is just your line rental that will be increasing, everything else will be staying the same, unlike Vodafone.
  • Someone
    Price increases aren't happening on the latest tariffs, so change to an equivalent new talkplan just check the minutes aren't worse off e.g. an old £35 plan would now be 36.50 but the latest plans pricepoint is 36.00 so saving 50p and potentially more minutes etc
  • David
    Good time to point out that BT are continually upping my line rental and that this is the first time in ca. 5 years that Orange have increased my monthly payment. It's £1.15 I'd rather have in my pocket, but at less than £28 over the course of two years .... I'll live.
  • Ian
    Does nobody read T&C's anymore??? it was there when you accepted the contract, and its still there now. You signed to say you accept that the charges can increase, and if its equal to or below the RPI you cant leave.....its there in your contract - What isnt there however is a monthly cost because the price isnt part of the contract!
  • Orange l.
    [...] of big business willing to use the economic climate to justify higher pricing’. Another commenter on BitterWallet put it very well – and raised the issue that what Orange is doing is incredibly hypocritical. Commenter Tim [...]
  • Adam
    Well I agreed to pay x amount a month and now they're saying 'well actually we want more..' soon as my contracts up ill be going with a different provider, shitty orange are going to lose loads of customers over this.
  • Apple
    They should really introduce the rise when a new contract is started or better still get rid of orange Wednesday. They will all follow in orange foot steps so nobody will be better of, my idea is to call tomorrow kick of and get a £10 credit that sort me.
  • Jon
    Ive Just Had A New Contract Yesterday. Why Do I Still Have To Pay... Had A Txt Through 2day!!!
  • Mike H.
    Damn it! How can I afford my games, blu-rays, cinema tickets, Starbucks and meals out now? I'm starving here! I can't afford to feed my 5 kids! I may have to sell one of my cars to webuyanycar.com when I can finally stop playing Skyrim on one of my consoles. I blame the government! Sent from my iPhone
  • Steven H.
    @Jon If you took your new contract out only a few days ago, then you are one of the lucky ones, you still have your 14day cooling off period. and if you wish may cancel your contact within this time.
  • Terry H.
    Cunts
  • Jap
    The problem with this is that Orange state it is in their T&C's, which it is, and we cannot dispute that. They have the right to raise the price. The Communication Act 2003 9.6 says if they make any modifications which are of material detriment then they must allow customers to cancel without penalty. That is law, it does not matter what their T& C's state, they cannot override the law. Ofcom have told me that any price rise is of material detriment and Orange are wrong. Complain to Ofcom and CICAS To Orange, well done for alienating your loyal customers. You are not above the law.
  • christa
    Unless you deal with contract law on a regular basis this clause would pass you by. I didn't realise I signed up to a variable price contract like 99% of Orange customers. In a few months time I will be saying adios to Orange.
  • knowsitall
    interesting thing, one of the REASONS for high inflation numbers is mobile phone prices. the snake is now eating its tail...
  • Christa
    Thanks Orange you've just given me an early Christmas present. I had forgotten that I could review my contract after a year, just called customer services and for giving up 150mb a month (Which wasn't used on this contract) have saved a fiver a month for the next 7 months. Turned out to be a painless & amicable process, will still be parting company at the end probably for O2 & their priority moments.
  • JB
    The issue here for me isn't the % increase, it's the fact Orange's network coverage is absolutely appalling, as is there Customer Services. I just hope they have screwed up and Ofcom agree that Orange have breached some rule that means I can cancel early! I've been with them for 8 years and contract ends in August 2012, so will be gone anyway soon, but if I can get out now I will! If the service and network coverage was amazing then Orange wouldn't have so many fucked off customers. I hope they lose a fortune over this, which they will as people go to better providers.
  • LE
    I signed up to £30 a month 24 month contract i never relised that they could put up my contract half way through, Surley a contract is just that for the juration, I am already paying the £30 and getting nothing in return i got the contract for my son , As he was useing it to run huge bills up i desided to ask orange when he had reached his quota could they block him till his next lot of minuits are due they said no and blocked it full stop so he cant get anything for the £30, unfair now they have the cheek to up the bill because of riseing prices oh well rip off Britain at it's best .
  • Dawn L.
    please help ; my husband left me last year and i took out a mobile contract with orange ,i can no longer afford it,:( i need to cancel it ,i know i may have to pay a forfit ,i guess this cant be avoided ,im on a £41 a month contract and it does not run out until 2013 (november) ,please what should i do ,and does anyone know if i will be able to keep the phone and make it a paygo,thankyou everyone ,i need to get out of this pickle x
  • neil h.
    I have been with Orange for 6 yrs and have always been on contracts, I was always under the impression that a contract is a two way thing. I would not be able to get out of the contract if i wanted to and Orane has put up its price on a fixed contract. Its not the money but the principle of the matter, so I will be leaving in December at the end of my contract. No more fixed contracts for me.
  • orangecrap
    i have 4 contracts and i will not be paying the extra i will simply drop my tariffs to lowest they have therefore they will loose out as well i pay over £150 a month and im not willing to pay a penny more stuff em the service i get is way below standard internet connection is crap if they refuse to drop my tariffs i will stop paying i couldnt give a crap what they do enough is enough they simply ripping us of again

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