Three Introduces Tiered System for Contract Price Increases

Three UK has updated its pricing structure to present annual price increases in “pounds and pence,” determined by tiers based on each contract’s data allowance. Each year, mobile customers will experience the following increases based on their data allowance:

• 4GB or less: £1 more a month
• 5GB-99GB: £1.25 more a month
• 100GB or more: £1.50 more a month

The new pricing method complies with Ofcom’s rules on mid-contract price rises, which require greater transparency regarding pricing. Broadband price increases will be capped at £2, while mobile price hikes will range from £1 to £1.50, depending on the data allowance. Customers will be informed of the annual price increases at the start of their contract, with the same fixed rise applying each year for the duration of the contract. The fixed price increases will apply to all customers who take out new or upgraded contracts starting next month. The first annual price rises under the new model will take effect in April.

Elaine Carey, Chief Commercial Officer at Three UK, said, “We regularly review and revise our pricing to remain competitive and reflect the cost pressures we face. We have always made sure annual price changes are clear and transparent to customers, and we want to provide greater clarity.”

New Ofcom regulations on mid-contract price rises state that price increases should be set out in “pounds and pence” at the point of sale starting in January.