In a bid to promote digital inclusion and ease the financial burden on its customers, Virgin Media O2, the UK’s second-largest telecoms operator, has taken significant steps to raise awareness of social tariffs. The company, with a customer base of 5 million broadband and TV users, is now including information on its Essential Broadband and Essential Broadband Plus tariffs in the monthly bills of all its customers.
While some may view this move as a strategic play for positive publicity during the holiday season and amid a cost-of-living crisis, the practical impact is clear. Customers will gain better knowledge of lower-cost pricing plans, addressing a long-standing issue highlighted by the regulator, Ofcom.
Ofcom has been advocating for social tariffs, urging telecom operators to not only introduce such plans but also to actively inform customers about their existence. Virgin Media O2’s initiative aligns with this push, expanding its outreach efforts beyond contract expirations to include all customers.
Moreover, Virgin Media O2 is lobbying for broader systemic changes. The telecom giant is urging the government to reduce the VAT on social tariffs from 20% to 5%, with the aim of passing on savings to consumers. Additionally, the company is calling for an update to the Digital Inclusion Strategy, seeking commitments to improve digital skills, support the second-hand device market, and enhance digital infrastructure in rural areas.
While these initiatives may serve both societal and business interests, Virgin Media O2 remains committed to customer-centric measures. The company plans to launch a mobile social tariff in the coming year and is transforming its O2-branded stores into National Digital Inclusion Hubs. These hubs will provide those in need with 25 GB of free O2 data, text messages, and calls monthly.
Virgin Media O2’s Chief Operations Officer, Rob Orr, acknowledges the impact of affordable connectivity on people’s lives, emphasizing the company’s ongoing commitment to support its users. As the telecom industry navigates the evolving landscape of digital inclusion, Virgin Media O2’s multifaceted approach aims to make a tangible difference in the lives of its customers, while also positioning itself as a leader in social responsibility.
