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Three to increase monthly contract prices

Three has announced plans to increase its rates for the first time in nearly 10 years. The network has said it is bumping mobile contract and mobile broadband prices by 3.6 per cent as of 16 July.

The hike represents Three's first price increase since it launched in 2003. The company blamed rising costs in business on inflation and has said the changes abide by the Retail Price Index figure from March.

The increase will only affect those customers who joined or upgraded their contracts with Three before 8 March 2012 and will be based on users' monthly bills before add-ons or out-of-bundle fees are applied.

"Increasing our prices for existing customers is a decision we have not taken lightly. We know that increases are never welcome and we have tried to do this in the fairest way possible for all of our customers," said Three's marketing director Thomas Maleschitz.

Similarly, Orange announced in November 2011 that it would begin applying a 4.34 per cent increase to customers who signed contracts with the network before October 2011.