Britain’s biggest mobile phone network providers are facing a class action claim that their loyalty customers are being overcharged.

According to consumer rights champion and former Citizen’s Advice executive, Justin Gutmann, Vodafone, EE, O2 and Three are “abusing their dominant positions” in the UK mobile industry by charging a ‘loyalty penalty,’ in which long-standing customers were overcharged for handsets beyond the end of their contractual term.

Gutmann alleged the mobile operators have overcharged on up to 28.2 million contracts and, as a result, is seeking damages of at least £3.285 billion.

If successful, someone who held a contract with just one of the mobile operators could receive as much as £1,823.

Gutmann said: “I’m launching this class action because I believe these four mobile phone companies have systematically exploited millions of loyal customers across the UK through loyalty penalties – taking over £3 billion out of the pockets of hard-working people and their families.

“These companies kept taking advantage of customers despite the financial crisis of 2008, Covid and now the cost of living crisis. It’s time they were held to account.”

He added: “If our claim is successful, it will finally stop these firms from taking advantage of their loyal customers and stop the immoral practice of loyalty penalties.”

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O2 will deliver ads across video-sharing platforms, news sites, social media platforms, and even dating apps, sharing the message that millions of people are unable to do the same as those users and promoting the mobile network provider’s ongoing Community Calling activity.

The Community Calling initiative was set up by O2 and charity Hubbub, with the aim of donating 10,000 unused smartphones and 12 months of free connectivity to ‘digitally excluded’ people.

“At O2 we know how vital connectivity has been to millions of people this past year, whether that’s enabling them to work effectively from home, keeping in touch with loved ones or even just helping them to unwind with some online entertainment. We have also seen the devastating impact digital exclusion can have on the most vulnerable people, from loneliness to lack of access to essential services and we’re determined to raise awareness of this with our new digital campaign,” said Nina Bibby, Chief Marketing Officer at O2.

“The Community Calling project has already had such a positive impact on so many people’s lives and our latest campaign is just the latest step that O2 has taken to help our customers at this difficult time. I would encourage everyone in possession of a spare handset that is sitting unused at home or work to get in touch and help somebody in need to get connected.”

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From next month, TikTok users will be able to bring Bubl into their homes by using O2’s branded effect AR lens and create a secret handshake with the robot.

The experience forms part of a campaign centred around a TV ad featuring an average man who sees people on his street receiving deliveries from O2 – each one of which arrives with their own Bubl. Feeling he is missing out, the man orders a phone from O2 and also receives his own little robot, which he goes on to begin forming a positive relationship with.

The campaign will run across TV, broadcaster video-on-demand, out-of-home, social, online video, retail, PR, and online.

“Beginning the year in lockdown has been difficult, and it’s impacted every part of all our lives,” said Nina Bibby, O2 CMO. “We’ve felt this along with everyone else, which is why we’ve focused on how we can help customers get the most of technology. We’re committed to putting customers first and we wanted to create offers and a campaign that helps them get the latest technology at great value – and not to miss out.”

The TV ad will air for the first time today (23 February), with key weekend spots during the Six Nations game between Italy and Ireland, Saturday Night Takeaway, and The Voice.

A full-length version of the song featured in the advertising campaign, created by producer Wilma Archer and rapper Vritra, will also be released as a limited-edition vinyl.

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The product, called ‘telco-powered targeting – together with O2’, makes use of aggregated and anonymised customer behaviour data to match websites with audience segments, enabling advertisers to reach people based on ‘real’ customer behaviour.

Audiences can be targeted based on demographics, lifestyles, or life stages, with a particular focus on those who have shown an affinity toward particular brands, hobbies, or interests.

“This strategic partnership with Blis, leveraging the extensive anonymised and aggregated data from the O2 network, will deliver the kinds of audience insights that will enable brands to shift the needle on their advertising,” said Sergio Budkin, Director of Business, Products and Propositions at O2 (Telefónica UK). “Blis has proven experience in delivering results using location data and we’re thrilled to partner and bring this exciting proposition to customers across the UK.”

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The suite of internet of things (IoT) safeguarding solutions, created in partnership with Bell Integration, includes a thermal imaging tablet, a handheld thermal imaging scanner, and social distancing room management.

The thermal imaging tablet is an all-in-one temperature sensing tablet, which is said to read surface body temperature from a distance of one metre. The tablet is combined with the capability to manage visitors and ensure a contactless check-in, with each visitor required to use a unique QR code to confirm their attendance.

The handheld thermal imaging scanner promises an accuracy to 0.5 degrees and can be used in both controlled locations with limited people and in high footfall locations.

With social distancing management, businesses are able to monitor people count and occupancy status of communal areas. It features a digital display unit which shows green or red, depending on whether it is safe to enter an area.

“We’re delighted to be rolling out these new solutions to help British business reopen their doors safely. During lockdown, connectivity became one of the UK’s most valued services and we have continued to look at ways we can use our customer-centric networks to support this country,” said Jo Bertram, Managing Director at O2 Business.

“As we look to rebuild Britain, these new COVID-19 solutions will help minimise the risk of spreading the virus as the nation returns to work – through automation and reducing moments of physical interaction. It will not only help businesses get back on their feet but bolster their confidence as they reopen their doors over the coming weeks and months.”

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Today, O2 announced it has signed an agreement with Disney’s Direct-to-Consumer & International segment to be the exclusive mobile distributor of Disney+, ahead of the streaming services launch on 24 March. As part of the collaboration, new and upgrading pay monthly customers are eligible for six months of Disney+ free on O2’s service.

Disney+ features over 500 movies, 350 television series, and an array of new Disney+ original films, which can be watched on almost all mobile or connected devices. Some of the most notable and popular brands that are featured on the streaming service include content from Disney, Pixar, Marvel, Star Wars, and National Geographic.

“We’re delighted to be working with Disney to bring these incredible shows and movies to our customers, demonstrating that there are more reasons than ever to join the UK’s No.1 network,” said Mark Evans, CEO of O2.

Jan Koeppen, President, The Walt Disney Company EMEA said: “We’re delighted to work with the award-winning mobile network O2 on the UK launch of Disney+, which represents a new chapter in the way Disney delivers our timeless stories to fans.”

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Working from Greenwich and the Queen Elizabeth Olympic Park in Stratford, the lab is comprised of experts from TRL, DG Cities, Cisco, and Loughborough University. Those involved claim it is the ‘most advanced driverless testbed in the world’.

According to O2’s own research, a 5G road management system could reduce the time drivers spend in traffic by 10 per cent, save the economy £880m a year, and reduce CO2 emissions by 370,000 metric tonnes a year.

“At O2 we’re determined to help businesses of all sizes access the potential of 5G mobile technology,” said Brendan O’Reilly, chief technology officer at O2. “We know that by powering the transport sector we can make a real difference to consumers by reducing traffic congestion, making journeys safer and faster.

“We’re excited to be working with the teams at the Smart Mobility Living Lab, who are driving forward our understanding how this next generation technology will fundamentally change the fabric of the cities in which we live and work as well as creating entirely new ways to travel.”

Earlier this year, O2 entered into a similar agreement with the AutoAir 5G project, making it the provider of 5G connectivity for self-driving vehicle testing at the Millbrook Proving Ground in Bedfordshire. It followed this up a couple of months later by inking a deal with the European Space Agency to support a connected and autonomous vehicle project dubbed ‘Project Darwin’.

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5G will be introduced at train stations, important business areas, and entertainment and sports venues, including The O2 and Twickenham Stadium, as part of what O2 is calling an “intelligence-led rollout strategy driven by data and insight that identifies where customers will benefit from 5G the most”.

Ahead of the launch, the Samsung Galaxy S10 5G will be available to O2 customers from 8 August, followed by the Xiaomi Mix 3 5G later in the same month.

“5G is going to be a game changer for our country. Whether it’s for people or businesses, the power of this next-generation network is going to unlock a world of possibilities for our economy and society,” said Mark Evans, Telefonica UK CEO.

“As we switch on our network across the country, our intelligence-led roll-out prioritises the key areas in towns and cities first – the places where our customers need, and will use, 5G the most. We’re also giving our customers maximum flexibility with our industry-leading custom plans, letting people adopt 5G at a time that’s right for them.”

O2 has also announced that it will be opening 5G innovation spaces within its Wayra accelerator hubs. These spaces will provide 5G test environments to startups and scale-ups. In addition, the operator will launch a new business division on 1 August. O2 Business will consolidate its B2B activity across enterprise and wholesale partners, bringing together all product development alongside its enterprise and wholesale sales and commercial teams.

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The mobile network operators have also agreed to greater 5G network autonomy on around 2,700 sites in 23 UK cities, representing over 16 per cent of combined mast sites. This autonomy is already present in London, so the total has been brought up to 25 per cent overall. At the sites, both companies will install their own radio equipment, fibre ‘backhaul’ connection, and power supply, while sharing physical elements such as the mast.

“We’re driving our 5G roll-out forward with this agreement, and taking our customers, our business and the whole of the UK with us,” said Nick Jeffrey, Vodafone UK CEO. “Greater autonomy in major cities will allow us to accelerate deployment, and together with active network sharing, ensures that our customers will get super-fast 5G in even more places more quickly, using fewer masts. We can boost capacity where our customers need it most so they can take full advantage of our new unlimited plans. And it demonstrates our commitment to further invest in our multi-billion-pound network in the years to come, helping the UK become a digital pioneer.”

Vodafone and O2 already have an existing joint venture company which owns and manages the phone masts of the pair. Cornerstone, which was formed in 2012, will now take an additional role in the deployment of both networks and look to capture further operational efficiencies. With this, Vodafone and O2 will begin exploring monetisation options for their joint mobile infrastructure services company.

“Today is an important step in demonstrating our commitment to invest for the future, with mobile connectivity one of the UK’s most powerful opportunities to strengthen the economy and improve the lives of British people,” said Mark Evans, Telefonica UK CEO. “This agreement will enable us to roll-out 5G faster and more efficiently, benefiting customers while delivering value for our business.  It also importantly allows us to utilise the spectrum we acquired in the last auction very effectively.”

Vodafone became the second UK mobile operator, after EE, to switch on its 5G network earlier this month. The technology initially launched in Birmingham, Bristol, Cardiff, Glasgow, Manchester, Liverpool, and London, before being introduced in Birkenhead, Bolton, Gatwick, Lancaster, Newbury, Plymouth, Stoke-on-Trent, and Wolverhampton.

O2’s 5G network is expected to begin rolling out later this year.

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The TV spot features the UK being showered with stars falling from the sky, as people catch stardust in the form of exclusive invitations only available to O2 customers. The ad, which features a soundtrack by Tom Grennan covering ‘City of Stars’, will air during Love Island and Celebrity Juice today (5 July) before featuring in other prime time slots during shows such as 8 Out of 10 Cats and The Voice Kids Final. It will also feature across social media, video on demand, and at out-of-home sites across the country.

To support the ad, O2 has also introduced a Snap Lens on Snapchat, enabling users to catch their own stardust via augmented reality. There’s also a dedicated Priority Bot on Facebook Messenger.

The refreshed Priority app uses a combination of AI and machine learning to present relevant perks and experiences to customers in a ‘Just for you’ section. Customers can now also select up to three preferences of things they like to do and what they would like to do more of.

“Today we celebrate the relaunch of Priority, with a completely new app design and new personalised invite-only moments based on our customers’ preferences,” said Rachel Swift, brand director at O2. “This campaign brings to life how our customers feel more alive with Priority, supported with regular exclusive experiences from a fantastic range of new and existing partners.”

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