28 Mar Broadband firms are ‘taking advantage’ say customers
ALMOST all broadband customers think they are being taken advantage of by internet giants who are whacking up their prices mid-contract next month by as much as 14.4 per cent.
An astonishing 96 per cent feel they are being unfairly treated by firms such as BT, TalkTalk and Virgin – and 90 per cent are calling for price rises in the middle of a contract to be outlawed, according to a new study.
Two-thirds of those in the study, by challenger broadband provider Hyperoptic, had signed up to a new deal in 2023 and were now feeling instant regret.
The research found that half of all customers had no idea the April price rise would be so big, and a quarter had no idea at all that they would even face an increase, despite many having signed up after the hikes had been announced – suggesting providers need to do more to highlight them to customers.
Controversial agreements with the UK broadband regulator allow firms to increase their price in the middle of any contract by the rate of inflation PLUS 3.9% on top, which means hikes of 14.4 per cent.
The study found that price is very important for more than 80 per cent of users when choosing their broadband provider, and that two-thirds would have chosen a different firm if they had known how big the April price rise would be.
Data from the ONS says that, on average, households will see a rise of £11.25 per month after the 14.4% price rise that the likes of BT are applying in April.
Hyperoptic, which has vowed to never increase prices during the term of a deal, has developed a free online calculator that will show broadband users how much more they will have to pay to their current provider – and is campaigning for all mid-contract rises to be banned.
Hyperoptic’s Chief Customer Officer Lutfu Kitapci said: “Price is a hugely important part of the decision-making process for people buying broadband, so to find out you’re being hit with a 14% increase just weeks after signing the paperwork is worrying and unfair.
“Two thirds of people are now stuck in long contracts that they’re regretting signing up to, and they have no option but to face the price hike or fork out hundreds of pounds in exit fees. That’s not right.
“Hyperoptic has never hiked prices mid-contract. And we are continually campaigning at the highest levels to get this unfair practice changed – if a provider chooses to hit its customers with a mid-contract price rise, then those customers should be free to switch.”
