Ofcom’s Post

And with that Ofcom becomes the first regulator in Europe (as far as I recall) to prohibit inflation-linked mid-contract price rises. Agcom and the Malta Communications Authority have tightened up their rules and ANACOM - Autoridade Nacional de Comunicações published some recommendations on price increases with industry, but the UK will now see an outright ban on the practice, which had become popular among some operators in recent years, with Vodafone a major advocate UK operators had been aware this decision was coming, with BT Group and Vodafone UK News already making pre-emptive changes to their terms. Risk now is of unintended consequences, including the impact on prices overall

It’s a good step Ofcom but let’s be honest… it’s not enough! Ofcom, as a regulator, is supposed to protect consumers and promote healthy competition. But this new regulation may end up enabling the big telecoms companies to get away with higher than ever mid-contract price increases, under the guise of being “more transparent and fair”…!! Don’t believe me? Here’s an example of a typical large telecoms companys price rise maths! 🤑this company had an annual price rise of 7.9% on March 31st 2024 - this is a combination of 4% for CPI + 3.9% 🤔A typical package with them could be in the region of £30-£35, meaning the monthly price would’ve increased by £2.37 to £2.77… 🚨BUT bear in mind 4% CPI is HIGH: for the last decade (pre Liz Truss) it’s been more like 1 - 2.5%. 🤥 this companies (and other major telcos are starting to follow suit as well) new policy, to comply with this more “transparent and fair approach” is to increase all broadband customers monthly bill by £3 a month… which means an average customer on £30 - £35 would expect to get a price increase every year in the region of 8.5-10%!! Higher than this years already high increase of 7.9%… 🦸Don’t worry though!! there are a number of exciting, smaller ISPs out there offering fixed price guarantees for customers in contract - All this is highlighting is that people need to ditch the big old telco’s and find a younger, fresher company to buy from… one that does things better and genuinely puts customers first… 😉 #banmidcontractpricerises

Today Ofcom has announced that mid-contract price rises linked to inflation for phone, broadband and pay-TV packages will be banned from January 2025. We provided Ofcom with insights on this topic including our research on the rising cost of basics which shows that 67% of consumers were concerned about the affordability of telephone, mobile and broadband. We welcome today’s announcement which will provide certainty for consumers on what they’re paying for telecoms, removing the worry of mid-contract price rises. Our research on consumer views and behaviours in response to the rising cost of basics is available here: https://lnkd.in/eQPnNsp7

Ofcom has proposed to ban inflation-linked mid-contract broadband price rises. Under the new rules proposed, broadband, TV & phone customers must be told about any mid-contract price rises in pounds & pence at the point of sale. Here's an example Ofcom gave 👇

‘Our latest research shows out-of-contract broadband, TV and mobile customers can save a significant amount of money by switching or haggling with their current provider, a great way to save money at the start of the new year. Many consumers may still face price hikes this spring. It would be outrageous if providers were to cash in on unfair mid-contract price rises before new Ofcom rules calling time on them come into effect. Telecoms firms must do the right thing by their customers and stop these practices immediately.’ Rocio Concha Galguera, Which? Director of Policy and Advocacy. We are calling on telecoms providers to cancel this year's price hikes predicted to be up to 10% for some mobile, TV and broadband firms this April. https://lnkd.in/ezrH27gq #TheRightToConnect

🌟 Exploring ways to tighten the purse strings in 2024? 💼 Let's chat! I can help you save on your monthly utilities. 💡🔗 #Savings #Utilities #UW

The majority of broadband and mobile providers in the UK have been implementing in-contract price rises, typically in the format of CPI or RPI plus a markup of 3.9%. Some providers also include contract terms which enable them to increase prices by any amount at any time during a contract. Unpredictable mid-contract price increases effectively obscure the true price of contracts, harming consumers and fundamentally undermining competition by preventing customers from accurately comparing prices. We are campaigning to stop this practice.

Did you know that every April, big broadband and mobile providers get away with raising their prices part-way through contracts? This means many of their customers could end up paying a lot more than expected. No other essential service can get away with this. It's vital that consumers know what they can expect to pay for their telecoms contract at the point of signing up. That’s why Which? is calling on providers to stop these practices as part of our The Right to Connect campaign. #CallItOut #Broadband #Mobile

As reported by BBC News, telecoms watchdog Ofcom calls for better transparency about any mid-contract price rises among phone, broadband and TV companies. The regulator expressed concerns that contracts were not providing sufficient clarity to customers, leaving them vulnerable to inflation-linked increases in payments. At Lit Fibre, we understand that the last thing customers want to worry about is their internet bill going up unexpectedly. That’s why we’re committed to never hiking our prices midway through the contract!   Find out more via: https://lnkd.in/eu4Srh_p    #fullfibre #Ofcom #InternetDoneProperly #ISP

The recent analysis by Cable.co.uk reveals that while Canadians may feel their internet bills are high, Canada actually ranks as the most affordable in North America, with an average monthly price of US$58.26. This study, which looked at over 3,400 broadband deals across 223 countries, found that regions with advanced infrastructure like the CIS and Eastern Europe offer some of the lowest prices. Meanwhile, Canada is making strides in increasing competition and affordability in the market. 🚀 It’s fascinating to see how our country stacks up and the efforts being made to improve access and pricing. Let’s continue the conversation on how we can leverage this to drive innovation and connectivity! https://lnkd.in/d-6cipJ8 #Broadband #InternetPricing #GlobalComparison #Innovation #Connectivity