O2 Contracts & Re-Contracting

IKOS

Hi,

Just wondering if anyone else had this issue before. When I was looking to change price plan to the O2 clear range I was asked to re-contract for 12 months. I was already into 6 months so the original contract turned into 18 months. I don't see why you should have to re-contract for the sake of a price change. O2 said this was because I was leaving one range of price plans and going onto another "clear".

I also noticed from looking at their forums people changing from 10GB mobile broadband to 15GB they are asked to re-contract for 12/18 months.

I just don't understand why O2 insist on keeping customers locked into contracts. Fair enough if you sign up for 12/18 months that's one thing, but say on month 11 you want to change price plan, they insist you re-contract for 12 months?

I know most phone companies have a minimum period of about 12 months, however, on Vodafone you can change price plan and not re contract.

Also, O2 are now asking for a contract extension for addon's (Blackberry internet solutions).

I dont see why they are so desperate to retain customers, when other phone companies are not playing this game.

Has anyone else noticed or experienced this?

thanks.
ikos

aidan_walsh

You are deciding to end the terms of your original contract and start a new one. If a different company does things in a way you prefer, you should consider moving your service to them.

IKOS

aidan_walsh wrote: »

You are deciding to end the terms of your original contract and start a new one. If a different company does things in a way you prefer, you should consider moving your service to them.

No, its a term in the original contract, the first contract is not ended. And yes, I did change provider.

Thanks

Cabaal

If you change price plans is actually pretty normal to enter a new contract, ISP's and Mobile providers have been doing this for years.

It doesn't rally matter if one company does this and another doesn't, they are entitled to do so if they want.

In relation to why they want people in contracts...well it secures their customer base and lessons the chance of customers changing to other companys during the contract period.

jor el

How did you change provider if you're still in contract? Did they charge you a penalty?

Anyway, it's standard practice for mobile operators to do this. I wouldn't always agree with it though. If it's a good product then they shouldn't need to lock the customers in, the customer will want to stay. The other operators do the exact same, so it's not exclusive to O2.

IKOS

jor el wrote: »

How did you change provider if you're still in contract? Did they charge you a penalty?

I paid the remaining months of the contract yes. My main issue was, I was tied into a contract for no reason as people could come in on their 30 day contract and not only have the freedom to move anywhere in terms of price plans, but also got a cheaper rate per month.

Cabaal

IKOS wrote: »

I paid the remaining months of the contract yes. My main issue was, I was tied into a contract for no reason as people could come in on their 30 day contract and not only have the freedom to move anywhere in terms of price plans, but also got a cheaper rate per month.

The 30 day copntract don't apply to all the price plans they have though...only a select few the same as any mobile provider

IKOS

jor el wrote: »

How did you change provider if you're still in contract? Did they charge you a penalty?

Anyway, it's standard practice for mobile operators to do this. I wouldn't always agree with it though. If it's a good product then they shouldn't need to lock the customers in, the customer will want to stay. The other operators do the exact same, so it's not exclusive to O2.

Sorry for posting again.

I was under the impression the contract was to ensure the company gets a return on the subsidised handset. As you say, others do this, but I think its becoming a "lock in" clause as I don't see how customers are really benefiting from extending contracts.

IKOS

Cabaal wrote: »

The 30 day copntract don't apply to all the price plans they have though...only a select few the same as any mobile provider

Well with O2 I am nearly sure they allow the majority of their plans on the 30 day contract, except of course the iPhone ones.

I think O2 are great offering this 30 day contract in terms of options as I think all clear plans are available, just the unnecessary lock in I dont understand.

Cabaal

IKOS wrote: »

Well with O2 I am nearly sure they allow the majority of their plans on the 30 day contract, except of course the iPhone ones.

Seems they do off hand just looking at their website

I think O2 are great offering this 30 day contract in terms of options as I think all clear plans are available, just the unnecessary lock in I dont understand.

Did you avail of a new phone when yuo changed contracts?
If you did then this explains the new contract as the 30 Day contracts are SIM only packages according to their website

IKOS

Cabaal wrote: »

Did you avail of a new phone when yuo changed contracts?
If you did then this explains the new contract as the 30 Day contracts are SIM only packages according to their website

No, I was on an old price plan and I asked to change to another price plan. I had the same phone. I was in a 12 month contract, I asked to change 6 months in, I was asked to extend my contract for a further 12 months.

If I had changed phones, I would expect this just like an upgrade, but I didnt have any benefit except change price plans. Maybe this was seen as a benefit and to me I suppose it was. But O2 didnt have loss etc as I am nearly sure I was paying around the same amount on the Clear plan as I was on the old one. I cant remember the name of the original tariff now.

I just dont understand why they insist on extending contracts.

run_Forrest_run

IKOS wrote: »

I just dont understand why they insist on extending contracts.

because it guarantees them an average fixed income over a fixed period, an accountants dream..simple really.

Cabaal

IKOS wrote: »

No, I was on an old price plan and I asked to change to another price plan. I had the same phone. I was in a 12 month contract, I asked to change 6 months in, I was asked to extend my contract for a further 12 months.

I'd understand the extention if they give you a phone

If I had changed phones, I would expect this just like an upgrade, but I didnt have any benefit except change price plans.

imho they should have put you on a clear price plan you'd think, but perhaps their account systems doesn't allow you to finish the 6 months and also be on a clear plan?

Not great outcome if you didn't even get a phone

hickory

jor el wrote: »

How did you change provider if you're still in contract? Did they charge you a penalty?

Anyway, it's standard practice for mobile operators to do this. I wouldn't always agree with it though. If it's a good product then they shouldn't need to lock the customers in, the customer will want to stay. The other operators do the exact same, so it's not exclusive to O2.

Its not standard practice for operators to do this, generally after 6 months of being in contract you can change downwards without any implications and you can change up tariffs at any point. O2 have started doing and it means of customers not being eligible for upgrades

Guy:Incognito

Cabaal wrote: »

If you change price plans is actually pretty normal to enter a new contract, ISP's and Mobile providers have been doing this for years..

Vodafone dont extend contracts like that. I've changed price plans probably at least once each year since I've been on billpay without any change to the contract.

Slice

Between O2, Meteor and Vodafone O2 is the only network that requires a new contract for changing price plans. It's neither fair or reasonable in my opinion but when you have Meteor, Vodafone and 3 to choose from as well it's not like you're left without options.

To be honest if you look at O2's contracts, T&Cs and their price plans it has to be the most restrictive network out there. Everytime I look to get a new phone I always check out all my options between the networks and I've always thought O2 to be the one that comes across as having most contempt for their own customers.

IKOS

Slice wrote: »

Between O2, Meteor and Vodafone O2 is the only network that requires a new contract for changing price plans. It's neither fair or reasonable in my opinion but when you have Meteor, Vodafone and 3 to choose from as well it's not like you're left without options.

To be honest if you look at O2's contracts, T&Cs and their price plans it has to be the most restrictive network out there. Everytime I look to get a new phone I always check out all my options between the networks and I've always thought O2 to be the one that comes across as having most contempt for their own customers.

Yes unfortunately that has been my experience too. I seen some people posting here with "there all the same" when I found others not to be the same.

As you say, there are plenty of operators to pick from now.

Its a pity the customer retention tactics are so aggressive.

Hi

I used to work in o2 customer care, at the time the general policy with regards to your situation was this:

If you were moving to a lower price plan ie one that cost you less money each month we would ask you to sign new contract.

However if you were moving to a higher price plan ie one that cost you more each month we would not ask you to sign a new contract.

I suspect that you moved to a lower price plan?
The reason you would be asked to sign a new contract is to make sure that the handset you got for free/discounted price gets paid for.