Three UK introduces new tiered pricing structure to provide extra clarity and fairness for customers
Three UK has today announced a new pricing structure for annual price rises to provide greater clarity for its mobile and broadband customers. The new pricing model will outline annual price increases in “pounds and pence” with the amount depending on customers’ data allowance to allow them to better plan ahead.
Contracts will increase by between £1 and £1.50 a month, dependent on the data allowance of a contract. Home Broadband customers will see annual rises capped at £2 a month per contract, significantly below what any other large provider has announced.
The new pricing structure for mobile customers has been designed to ensure that increases for customers are fair and based on a customer’s data allowance, rather than a blanket approach that applies the same rise regardless of what a customer is paying currently.
Under the new pricing structure, each year mobile customers will see the following increases depending 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 annual price increases will be outlined to customers at the start of their contract and remain the same each year throughout the length of a contract.
The fixed price rises will apply to all customers taking out new or upgraded contracts from September 2024. The first annual price rises under the new model will come into effect in April 2025, in line with Three’s existing annual contract price rises.
Elaine Carey, Chief Commercial Officer at Three UK, said: “Like many mobile providers, we regularly review and revise our pricing to ensure that we remain competitive and reflect the cost pressures we face as a business. While we have always made sure annual price changes are clear and transparent to customers, we want to provide greater clarity going forward. Our unique tiered approach means any increase is fair, while ensuring our prices remain competitive.”
The announcement means Three’s pricing structure is consistent with the new regulations announced by Ofcom on mid-contract price rises, which mandated that price rises should be set out in “pounds and pence” at the point of sale with effect from 17th January 2025.
The annual price rises will support Three’s continued investment in its UK network as it navigates rising costs across the business, including staff pay increases and energy costs.
