The communications provider, Orange has decided to increase monthly bills to the tune of 4.3% from early next year. Against the company's decision to hike the price, Ofcom is getting hundreds of complaints from the customers and the regulator may launch an investigation into the matter.

A spokeswoman of Ofcom said that the regulator is monitoring the nature of complaints it is getting and it is not the amount of complaints that would trigger an investigation, but the nature of complaints. She added that the complaints are still pouring in.

The spokeswoman added that the regulator was monitoring the complaints of Orange's customers with reference to General Condition 9.6 and the UTCCR (the Unfair Terms in Consumer Contract regulations). Basing on these two, regulator would take its decision whether to take action or not.

On the other hand Orange justified its move by telling that it is well with in its rights to raise prices. The provider pointed out the terms and conditions in the contract and stated that the provider has the right to increase the charges up to the RPI figure in any 12 month period. (Retail Price Index) The RPI figure is currently running at 5.4% whereas the increase is only 4.3%.

As per the rules and regulations of Ofcom, adequate notice should be given to the customers in the event of any modifications that are likely to be of material detriment. As per the rules, providers are bound to give at least 30 days notice to the customers to enable the customers to withdraw form the contract with out penalty if they opt for switching. Hence, all the claims would revolve round the interpretation of the term "material detriment".

A spokeswoman for Orange said that the hike in the charge is not of material detriment to Orange customers. The provider, as per the terms and conditions, is entitled to raise the charge up to the current RPI figure which is currently 5.4% in any 12 month period, but the company has only raised 4.3%. That raise is really negligible and she cited some examples. For a customer who is paying 15 Pounds a month at present has to pay 15.64 Pounds including VAT after the increase. A customer paying 20 Pounds per month has to pay 20.86 pounds after the hike.

Despite all these arguments, consumers were not happy. Consumers voiced their anger through Blog and Mobiletoday.co.uk. Some of the views appeared in the Blog are like this, Dismiss the board and apologise for the worst business decision ever taken. What would be the condition is these people are allowed to run Europe? I am angry with the company's arrogant attitude.

Another person was in Carphone Warehouse and was about to sign a contract with Orange when a customer who was angry with the hike of charge came to the shop. This made the first person to tear up the contract and he had decided not to become an Orange customer again.

Yet another comment is that a person has decided to leave Orange not because of the cost but on the question of principle. One person considered the hike as voting with the feet. He says that Orange may get out of him a maximum of 10 Pounds if he continues to be a customer up to August 2012 but at the same time it will loose another contract for two years as he has decided to switch provider at the end of the term. One opinion is in favour of the firm. It says that though that person is not in favour of the price hike, the company has the right to hike prices as per the terms and conditions in the contract.