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dstroke7
On our wavelength
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Message 1 of 8
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mobile tariff increase

Today I received an email stating that my mobile tariff will increase per month by 1.6% inline with RPI.

However, as just announced the RPI has actually fell from 1.6% to 1.3.

Does this now mean the increase will be 1.3 and not 1.6?

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Superuser
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Message 2 of 8
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Re: mobile tariff increase

Is that 1.3% the rate for the last 12 months, or just the current rate? There's only one price increase per-annum, so mathematically it should cover the whole year.
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enlli
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Message 3 of 8
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Re: mobile tariff increase

It depends on the rate for whatever month virgin use. O2, EE and 3 are 1.3% but they went up earlier. New Vodafone contracts which are not protected are the same.

 

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imc
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Message 4 of 8
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Re: mobile tariff increase

@Gorf Technically RPI is just a number that represents (in some sense) the current cost of living; however, when the ONS publishes the rate of inflation it's always the difference between the RPI now and the RPI twelve months ago.  So just today they have said that the rate of inflation as measured by the change in RPI from April 2015 to April 2016 is 1.3%.  Last month (on April 12th) they published a figure of 1.6% which represents the change in RPI from March 2015 to March 2016.  Virgin seems to have used this 1.6% as the basis of their price increase even though the increase is not due until July.

(BTW, the RPI is not considered a National Statistic any more since the calculation it uses has largely been discredited.)

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Superuser
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Message 5 of 8
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Re: mobile tariff increase


imc wrote:

Virgin seems to have used this 1.6% as the basis of their price increase even though the increase is not due until July.


Yes, the April figure is used. I'd expect that otherwise there wouldn't be enough time to ensure the communications go out to give the 30 days notice in time for the 1st July. This is shown on the Store pages:

http://store.virginmedia.com/virgin-media-mobile/sim-only/pay-monthly-sim.html

The charge for your airtime tariff will increase with your July bill each year. Any increase will be in line with the retail Price Index (RPI) rate of inflation announced in the April before and we’ll always give you 30 days’ notice of the exact increase each year.

**********************************
I work for Virgin Media - but all opinions posted here are my own
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Superuser
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Message 6 of 8
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Re: mobile tariff increase

So surely if the cost of living has gone down since the price was set, we'll see it's effect on tariffs this time next year.
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titchell
On our wavelength
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Message 7 of 8
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Re: mobile tariff increase

1.6% or 1.3% that is the question.....

Well, yes, but not really mine :-)

Had the letter notifying me of the planned increase to my VIP Sim Only Tariff which will increase by £3 a month.  Not a lot, but when compared to the £17 PCM I am currently paying that equates to 17.6% hardly in line with RPI??

Went to the Hanover Street shop in Edinburgh to discuss and after being ignored for some 10 minutes, was told that the increase was in line with RPI increase and offered the phone to call customer services. Could have done that from the house but thought talking to a Virgin rep directly would be more helpful.............NOT!!

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Superuser
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Message 8 of 8
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Re: mobile tariff increase

 

Virgin Mobile seem to be placing an arbitrary amount of £3 on customers bills.

No correlation to a set percentage.

See this post and response by Mat_H (Virgin team member): http://community.virginmedia.com/t5/Virgin-Mobile/increase-in-monthly-tariff/td-p/3122108

AlexKid :-)

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