Lit Fibre’s Post

Telecom customers must be told upfront in pounds and pence about any price rises their provider includes in their contract, under new consumer protection rules from Ofcom. This means those sneaky 'linked to future inflation rates' mid term price hikes are out. #Telecoms #UKTelecoms #Regulatory #ConsumerProtection #BillingTransparency

Well done Ofcom!... for its decision announced today to ban confusing inflation-linked mid-contract price hikes. https://lnkd.in/esAacbAX In April 2024, around 60% of broadband and mobile customers were on contracts with inflation linked price hikes - typically CPI + 3.9% - and most of those customers struggled to do the maths + predict the future values of inflation so they knew how much they were going to pay. That practice is now banned... hooray! It's a shame that it's taken regulation to force broadband providers to do what is so obviously the right thing for customers. Zen Internet has never implemented mid-contact price hikes for its consumer customers, and never will. This is a step further than the regulation, which still allows mid-contract price hikes, but only when stated in pounds and pence. Hats off to the regulator - well done Melanie Dawes and team. #broadband #regulation #bcorp #fullfibre #pricehike

📢 Advocating for Fair Telecom Pricing: Despite impending regulations to ban unfair bill increases, Which? reveals broadband and mobile companies planning hikes this spring. Consumers could face up to £35 more for broadband and £27 for phone contracts, with hefty exit fees. Rocio Concha from Which? urges companies to halt these practices. As the internet becomes vital, Which? campaigns for fairer pricing. Ofcom's new rules, expected in autumn, demand transparency. Consumers deserve better – it's time for telecom providers to prioritise fairness and transparency! Comment your thoughts below. BBC News: https://lnkd.in/eCS5r3Mc #ukbusiness #Consumer #funding

📱 Ofcom to ban inflation-linked mid-contract price rises on phones, pay-TV and broadband Phone, broadband and pay-TV companies are to be banned from imposing mid-contract price increases linked to inflation, in a crackdown by the regulator Ofcom. Under plans being introduced in January 2025, Ofcom will force providers to tell customers upfront, in “pounds and pence”, about any expected rises throughout the duration of their deals in a victory for campaigners during the cost of living crisis. The UK’s biggest telecoms providers had inserted terms into contracts imposing annual price increases linked to the consumer prices index (CPI) plus 3.9 percentage points. Most consumers were unaware of the practice, the regulator said. Some operators have been using the retail prices index (RPI), which is typically higher than CPI, plus the same inflation-busting 3.9 percentage point supplement. In December, Ofcom proposed to ban the practice after it carried out a consultation, with the move confirmed on Friday. From 17 January next year, providers must make clear any information about in-contract price rises to customers before they are bound by a contract, to enable them to make an informed choice. Providers must also set out when any changes to the monthly price will occur. https://lnkd.in/eCjkV7Gp

Since 2020 most major broadband and mobile providers have introduced inflation linked price increases in their contracts. Which?'s campaign spurred Ofcom, the media regulator, to investigate the issue; concluding that the practice of inflation-linked price rises can lead to ‘substantial consumer harm’. Ofcom is consulting on banning the practice, but Which? warns that won't protect consumers this Spring. #PartnerContent https://bit.ly/3Hgkyj2

🚫 After years of frustration over mid-contract price increases, there's finally some good news for consumers. Ofcom's ban on 'unfair' mid-contract mobile and broadband price rises based on inflation is a big win for customers! This move will provide greater protection and clarity for users, ensuring they don't face unexpected hikes in their bills. It's a step in the right direction towards a fairer and more transparent telecommunications industry. #Ofcom #ConsumerProtection #FairPricing https://ift.tt/Lu96p8t

Many businesses and individuals are facing increased prices for #Internet and #Phone Services - see link below. Wholesale prices are going up which may be partly to blame in some cases - in others, it is probably suppliers jumping on the cost of living crisis bandwagon and using it as a good excuse to increase prices. However, there is good news. If you are a business, you should have a bill analysis done by an expert (we can do this) who should be able to provide advice and guidance on how to mitigate increases and, in many cases, reduce cost. And if you are an individual, you should already be thinking of moving any broadband service still working on a phone line to a single order product (ie without a line - just the broadband) and porting your number to VoIP. Speak to us for advice. https://lnkd.in/e2NeCHZn

BT has become the first major telecoms company to scrap controversial above-#inflation price rises for #mobile and #broadband customers – but not before pushing through a final increase this year. The owner of mobile operator EE has moved to address the pressure on consumers from rising household costs during the cost of living crisis, after #telecoms companies were criticised for increasing bills. The UK’s largest mobile and broadband companies were accused of fuelling “greedflation” after a #Guardian investigation last year found they were pushing through above-inflation price rises. EE said customers will now be told clearly in “pounds and pence” the planned increase to their monthly bill from next year. The move comes a day before the official inflation figure for December is revealed, which most operators use to set their mid-contract price increases for customers. Analysts have estimated that this year’s round of price rises will add almost £500m to consumers’ collective bills from spring. #BT, #Vodafone, #Virgin-Media #O2 and TalkTalk all use a version of the mechanism, which usually takes the consumer prices index (#CPI) measure of inflation plus about 3.9%. However, Virgin Media O2 uses the higher figure of retail price inflation (#RPI) taken from the rate published for January. Last year, most mobile and broadband tariffs rose by 14.4%, although Virgin Media O2 customers faced a 17.3% rise, based on December 2022’s CPI figure of 10.5% and January 2023’s RPI at 13.4%. This year the expectations are that December CPI will be about 4% with January’s RPI forecast to be in the range of 6.5%. The move, which comes months before a ban from the telecoms regulator #Ofcom on companies imposing inflation-linked price rises in the middle of a contract, will put pressure on BT’s rivals that use the practice to follow suit. “Our annual price change is never an easy conversation to have with customers, particularly when so many people are dealing with the cost of living crisis,” said Marc Allera, chief executive of BT group’s consumer division. “We’re listening, and we’ve taken this on board. [We will] instead offer a clear and simple view of any changes in ‘pounds and pence’.” BT said that in 2025 mobile customers can expect a monthly increase from £1.50, and broadband customers from £3, depending on the specific contract they are on. Research by the consumer group Which? Estimates that telecoms firms will generate £488m from this year’s mid-contract prices rises.

Surprise mobile mid-contract price rises banned In new deals starting January 17, 2025, Ofcom's new regulations will prohibit surprise mid-contract price increases for mobile, pay TV, and broadband services. This change should bring significant benefits to businesses: Budget Certainty: You will be informed upfront about any potential price changes, allowing for more accurate financial planning and budgeting. Enhanced Transparency: Clear and comprehensible pricing information at the point of sale should ensure an understanding of all costs involved. Competitive Edge: With predictable pricing, it should be easier to compare network deals and choose the best supplier for your needs. At Utelize Mobile, we have always been committed to providing transparent and reliable mobile services and this regulatory change aligns perfectly with our mission to support your business with fair and clear contract terms. Find out more: https://lnkd.in/edY8RaXv #Telecoms #B2B #Ofcom #UtelizeMobile #BusinessSolutions

Today is the day that millions of broadband customers will be hit with above-inflation broadband price hikes – even if they are under contract. These in-contract price rises may be happening on April Fools Day but they are no joke – with price hikes of up to 8% being rolled out by some major providers. G.Network stands against this policy, as our CEO Kevin Murphy explains: “When you sign up for a contract you should know exactly what you’ll be paying for the duration and not be lumbered with above inflation increases - customers deserve transparency when it comes to cost. G.Network is taking a stand against in-contract price rises and committing to fair, market beating prices for our customers as well as offering Gigafast full fibre broadband that is 13 times faster than the London average broadband speed. There really is no better time to switch.’ At G.Network we promise no in contract price rises - just fair, transparent, market-beating pricing.