07 Dec 2011 01:04 PM

Orange price rise will have consequences

Orange price rise will have consequences

Having heard about the importance of good customer service at the Store Manager of the Year final last week and how it often made that crucial difference, I was amazed to learn a few days later of Orange’s sudden decision to raise its contract prices by 4.3%. As, no doubt, were many of the network’s loyal customers.

It was only a couple of days earlier that I had listened to experts from the industry eulogising about how the mobile retail sector was putting far more emphasis on people by making sure it was engaging staff and reaching out to customers. They emphasised how the industry had moved away from the long-established hard sell approach, making the experience of dealing with customers a more pleasant one.

So Orange’s decision to text many of its hard-up  customers to inform them of the pay rise flies in the face of good customer service practice, with scores of angry customers venting their fury on our website. Some of the comments were so severe that they were almost unpublishable.

Not only that, it simply beggars belief that Orange would take such a calculated gamble in a competitive market where all the networks are vying for a greater share. It will be interesting to see what the fallout will be from the decision when its results are published next year.

The network now faces an uphill struggle to retain customers angered by the price hike if it is to avoid a sales backlash.

However, Orange is fronting it out by insisting that it’s acting within its rights and has not contravened any particular rule or regulation – indeed, it claims the rise is just a reflection of the latest Retail Price Index (RPI) figures. But the industry regulator Ofcom told Mobile it will consider an investigation into the sudden pay rise based on the unfair clause in its consumer contracts regulations.

Let’s hope Ofcom takes a robust approach when investigating the matter.

Shujual Azam, Mobile editor

News: Ofcom mulls Orange 4.3% rise investigation



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14 COMMENTS

All providers of any service anywhere in the world reserve the right to increase their costs. Its just basic business ru ...
Im with Orange and they did pass on the VAT increase last year.
Orange did not pass the VAT increase on and if you cannot afford the extra £1 a month then you shouldnt own a mobile. Th ...
Hello Orange idiots.. You have lost my custom.. and I will make sure this year that none of my family go with Orange. ...
Why do people forget that the VAT increase was not put on at the start of the year on the line rental... Hello... Wake u ...
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