BB & mobile inflation plus contracts

Ramboh

I can't understand why this is not picked up more.  Most mobile and broadband companies offer duration based contracts and reserve the right to increase prices.  However their increase is predetermined as CPI or RPI PLUS another percentage - usually around 3-4%.   Why is there no campaign to stop this inflation plus extortionism from these companies? Are they suffering due inflation more than anyone else (I don't think so) or do they just have no morals about their approach which increases inflation even more so? 

BUFF

https://www.theguardian.com/business/2022/sep/29/record-8m-households-uk-struggle-telecoms-bills-ofcom-inflation-price-rises

BUFF

https://www.theguardian.com/business/2022/sep/29/record-8m-households-uk-struggle-telecoms-bills-ofcom-inflation-price-rises

molerat

Until we get a regulator that grows a pair and is not in the pocket of the telcos then they will carry on doing as they wish.  Which other "regulated" consumer industry contracts that can increase mid term while they carry on selling new contracts at the original price even after the rise ?

JohnReese

Ramboh said:

I can't understand why this is not picked up more.  Most mobile and broadband companies offer duration based contracts and reserve the right to increase prices.  However their increase is predetermined as CPI or RPI PLUS another percentage - usually around 3-4%.   Why is there no campaign to stop this inflation plus extortionism from these companies? Are they suffering due inflation more than anyone else (I don't think so) or do they just have no morals about their approach which increases inflation even more so? 

Indeed. One would have thought the regulator would say that if the Customer has to forecast and plan for their costs in advance and commit to paying an amount for a contract, then the Telecom/Mobile provider should also do the same. I.e. Set a fixed price for the fixed contract length. The Customer after all does not get to decrease the amount they pay based upon inflation. 

The Regulator should have done something all this time. The increasing arrival of more and more new firms that offer fixed prices (which are what one would have thought a contract should be in the first place) may force the change.  

Neil_Jones

Ramboh said:

I can't understand why this is not picked up more.  Most mobile and broadband companies offer duration based contracts and reserve the right to increase prices.  However their increase is predetermined as CPI or RPI PLUS another percentage - usually around 3-4%.   Why is there no campaign to stop this inflation plus extortionism from these companies? Are they suffering due inflation more than anyone else (I don't think so) or do they just have no morals about their approach which increases inflation even more so? 

This has been the case for Sky for years.  Its not a new practice.  Its just that everybody else has cottoned on.