“The big broadband providers have taken advantage of consumers”: Calls for an end to mid-contract price hikes

National World - LocalTV

Prices for broadband have been increasing by up to fourteen percent within the last year, according to a study which revealed more than two fifths of people have experienced a mid-contract price rise in the last twelve months. Now, providers are being called upon to end these increases as Ofcom launches its consultation.

Transcript

00:00 "People now often are signing up with this often quite small print term which says that

00:07 their prices are going to go up in April by, as you say, CPI inflation plus 3.9% and all

00:13 our research shows that most people just don't know what that means for what they're going

00:16 to pay. So we're not saying that you can't increase prices, you can have a rising set

00:20 of prices over a contract because often that's because there's a really good discount up

00:23 front but it's got to be so much clearer." Broadband contract prices are set to be impacted

00:28 in line with inflation once again come April. That's why broadband providers are being urged

00:33 to scrap mid-contract price hikes as research shows they leave consumers feeling angry,

00:39 frustrated and deceived. "They have not just hiked prices by inflation but hiked prices

00:44 above inflation and what's worst is they've done it in a way where a lot of customers

00:51 aren't expecting it. So research from the Consumer Organisation which shows that customers

01:00 are paying about £150 more than they expect. Then you've got to ask yourself in the current

01:06 environment is it right and ethical for big companies to put in place pricing structures

01:13 that end up with people paying more than they expect." "How can consumers be more aware

01:18 and do their research to make sure that the provider is actually sticking to the terms

01:24 of the contract, they're not doing anything dodgy." "In terms of what customers can do,

01:27 shop around, look on Trustpilot, that's a really good source of information on which

01:34 providers are doing the right thing and which providers are not. Have a look at Which, the

01:39 Consumer Organisation, so they do a comparison of service providers for broadband. Woe betide

01:47 you let your broadband contract run out of contract because again the big broadband providers

01:54 do take advantage of customers and there are examples of some well known names as much

01:59 as doubling your monthly bill for broadband. Can you believe that they could get away or

02:04 have the gall to double your monthly price." Regulator Ofcom is currently consulting on

02:09 the issue after having said in December last year that inflation linked mid-contract price

02:14 rise terms can cause substantial amounts of consumer harm by complicating the process

02:18 of shopping for a deal. Under new plans, providers may be forced to be up front about mid-contract

02:24 price rises in pounds and pence at the point of sale. "We do have a pretty healthy broadband

02:30 and mobile market in this country, there are great deals on offer, increasingly you can

02:33 get full fibre in your home, 5G, but this practice of these inflation linked deals is

02:39 really confusing for people. We're saying that increases should be set out up front

02:44 now in pounds and pence so that people know what they're going to pay in each month of

02:48 their contract and that will be much, much clearer for people." In response, Virgin Media

02:53 O2 said it had always been clear and transparent with their customers regarding any price changes.

02:59 A final decision on the matter is expected from Ofcom this spring.

03:02 [BLANK_AUDIO]

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