MSE News: Protection plan for phone and broadband price hikes unveiled 3 January 2013 at 11:32AM in Mobiles 8 replies 1.6K views

Former_MSE_Helen

"Under proposals announced by Ofcom today, customers hit by rises would be able to exit their contract without penalty..."

Read the full story:

Protection plan for phone and broadband price hikes unveiled

Wywth

I think that headline grabbing precis might be a bit premature currently.

What if the outcome of the Ofcom consultation is option 4,

Maintaining the status quo. Currently, providers must give one month's notice of a price rise and customers can only exit penalty-free if the change causes 'material detriment'.


Or even option 2
Tackling the current lack of transparency around the potential for price increases.

Surely they would just need to make the exit fees more obvious if this were to be the outcome of the consultation?

Valor

Doesn't really help - my problem is that Virgin Media are the only suppliers of fast broadband in my area, no Infinity and no other cable suppliers.

The latest price rise is nearly 10%, and they have been promising a speed doubling for over a year now - still waiting.

But what can I do?

wakeupalarm

How long does the consultation last? What's stopping Ofcon having another consultation afterwards if they are not happy with the outcome of the current one. How many years do we have to wait for the result to be implemented? The whole thing seems a bit pointless and just a way of Ofcon to avoid ruling on the current round of mid contract price increases.

dazleech

Strange OFCOM let all the companies raise their prices before making the announcement. I dont think OFCOM is really interested in protectng the consumer, just ensuring that lip service is paid.

JenniWR

Good news on mobile contracts though, if OfCom's preferred option passes. Brand new mobile phone, price rises 6 months into and 18 month contract, and it's bye bye O2, hello a shiny new phone from EE and a couple of hundred from ebay to boot!

Sadly, my Orange (as was) contract last rose as I was coming to the end of my 18 months.

gjchester

JenniWR wrote: »

Good news on mobile contracts though, if OfCom's preferred option passes. Brand new mobile phone, price rises 6 months into and 18 month contract, and it's bye bye O2, hello a shiny new phone from EE and a couple of hundred from ebay to boot!

Sadly, my Orange (as was) contract last rose as I was coming to the end of my 18 months.

Sounds good but won't be that simple. Prices may be fixed, or phones will stop being subsidised (which is not a bad thing) so you'll pay full price for the phone at the offset, if you are lucky tariffs may fall, if we are not you simply pay more up front and no benefit.

The networks are not charities they are in business to make a profit, they'll work within Ofcom's regulations to keep that profit margin up.

james_smitha

***gjchester*** if the rest of us can manage with out a pay rise, then they are running a cartell, just like Banks and oil companies

John_Pierpoint

Valor wrote: »

Doesn't really help - my problem is that Virgin Media are the only suppliers of fast broadband in my area, no Infinity and no other cable suppliers.

The latest price rise is nearly 10%, and they have been promising a speed doubling for over a year now - still waiting.

But what can I do?

Worry about the new face of Virgin Media, the telephone number payouts all round, the massive gearing, and the 15 year tax holiday your company will enjoy, to finance its global expansion?

That is what capitalism is all about, trying to corner a market, at least you are enjoying the fruits of a large investment - including the £25 refund that Diamond Cable/NTL never paid my son at college.