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Telecoms firms urged to scrap ‘outrageous’ inflation-busting price rises

TELECOMS firms were urged to scrap “outrageous” price rises that could trap consumers between £60 hikes and £500 exit fees this spring.

Consumer rights group Which? warned millions of people will be affected by “unconscionable” inflation-linked price rises by broadband and mobile providers this April.

Regulator Ofcom has declared that this practice causes substantial consumer harm but not yet implemented its proposals for a ban.

In a report released today, Which? raised concerns over new customers signing up to two-year long contracts who could still face unfair and unpredictable price hikes before Ofcom makes its decision on new rules.

Which? policy and advocacy director Rocio Concha said: “It’s outrageous that telecoms firms could yet again trap their customers between inflation-busting price hikes and punitive exit fees this April, despite Ofcom declaring this practice causes substantial consumer harm. 

“Telecoms providers must do the right thing by halting unfair price hikes immediately, rather than piling more misery on their customers.”  

Many of the big broadband and mobile providers are expected to raise prices using the consumer prices index (CPI) plus an arbitrary figure in April this year. 

These rises come just 12 months after many of these firms imposed price increases of more than 14 per cent on their customers.

BT, EE and Plusnet have already confirmed they will be going ahead with price hikes of 7.9 per cent for customers this April — 3.9 per cent more than the latest CPI figure of 4 per cent.

Which’s latest broadband survey and analysis of mobile market data found that the CPI-linked hikes faced by affected consumers sees them paying close to a whole extra month on top of their existing contract, yet they do not benefit from any additional services for this extra cost. 

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