Lets say you want the new HTC One M9 from O2. It is being released on 31st March 2015. So you sign a contract beforehand that states monthly cost is £40 per month. Well, from the 1st April 2015, the monthly cost will increase. And this price increase will be for any phone you sign up to on contract this month.

Now before you wonder why this is the explanation from O2 –

“From 2015, an O2 Refresh Airtime Plan or Simplicity pay monthly plan will be adjusted every April by the Retail Price Index (RPI) rate of inflation announced in the preceding February”.

So what is the RPI? At the moment it is 1.1%. So on a monthly cost of £40pm this will increase to £40.44. So is this fair after you have just agreed to a cost of £40 per month. I don’t think its good business ethics, do you?

If you want to read more, head over to O2 – http://www.o2.co.uk/desktop/prices

Thanks to Richard Yates for the heads up.