In a bold move, consumer watchdog Which? has penned an open letter to major broadband and mobile providers, including industry giants BT, EE, O2, Virgin Media, and Vodafone, urging them to halt planned mid-contract price hikes slated for April 2024. The letter, published as a full-page national newspaper advert on Thursday, January 11, calls for an end to what Which? terms as “unfair and unpredictable” increases that may leave consumers with limited options.
The advocacy group’s plea comes in the wake of Ofcom’s recent proposal to ban inflation-linked mid-contract price rises, citing “substantial consumer harm.” However, the proposed ban is not expected to take effect before the anticipated wave of price hikes in April 2024.
Amid the looming cost of living crisis, where households are grappling with financial strains, millions of broadband and mobile customers under contract face the prospect of substantial price increases. Reports indicate that some experienced hikes of up to 17% last year.
Which? estimates that telecom firms stand to generate over £400 million from the upcoming mid-contract price hikes alone. This staggering figure has prompted the consumer champion to call for increased transparency, urging providers to guarantee customers certainty about the total cost of their contracts when signing up.
Rocio Concha, Director of Policy and Advocacy at Which?, emphasized the potential harm these price hikes could inflict on consumers, stating, “Millions of people face price rises they could never have predicted when they signed broadband or mobile contracts and may struggle to afford.”
The open letter serves as a plea for providers to reconsider their plans in light of Ofcom’s regulatory concerns and the economic challenges faced by consumers during these times. Which? is calling for an end to in-contract price increases, advocating for a more predictable and consumer-friendly pricing structure.
As the industry awaits next week’s Consumer Prices Index (CPI) announcement on January 17, consumers are left on edge, hoping for a positive response from telecom providers to alleviate the financial strain on households. Which? encourages consumers to support their cause through their petition at which.co.uk/CallItOut, using the hashtag #CallItOut on social media platforms.