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Mid-contract broadband price hikes leaving people feeling angry, frustrated, and deceived

Zen Jan 17 2024 1 minute

Research from Zen has revealed that over two fifths (44%) of broadband users have experienced a mid-contract price rise within the last year, leaving people feeling angry (45%), frustrated (40%), and deceived (25%).

The findings come as many providers will be adding the UK Consumer Price Index (CPI) of 4% plus an additional margin, usually of 3.9%, to their customer’s monthly bills this spring. Amidst continued challenges around the cost of living, consumers are concerned about increased outgoings, particularly when it comes to their household bills.

Our surveying of 2,000 UK adults revealed the top three most important factors for Brits when considering broadband are monthly contract price (54%), reliability (51%), and broadband speed (50%).

Over two fifths of adults (44%) have experienced a mid-contract price rise, with just under a quarter (23%) only becoming aware of the clause in their contract when they checked their bank statement or online banking.

Our founder and CEO Richard Tang said: “The independent research shows that consumers simply dislike this practice, and it leaves a bad taste. Many are unaware this is even written into the small print of their contract. It is time for telecoms companies to be more transparent about their pricing structures, especially when monthly contract price is one of the top considerations for people choosing their provider.

“While Ofcom is running a consultation on banning telecoms providers from implementing inflation linked mid-contract price rises, any regulation passed won’t be in place until after this year’s increases. The reality is that many providers will be introducing price increases to contracted customers once again that are ahead of CPI. With increases of 14% or more last year, plus this increase of 7.9% this year, it amounts to a substantial additional burden to household budgets.

None of us in our industry is immune from the inflationary forces impacting supply chains and wages but we all recognise that customers need as fair a deal as we can offer. Our response to this challenge is our Contract Price Promise – a promise not to increase prices for the length of the contract period.”