Annual Broadband and Phone charges increases

Caveman1010

I would like to call on OFCOM to stop these unnecessary annual increases.  Which?'s latest broadband survey has shown that BT Group, which includes BT, EE and Plusnet, will be pushing ahead with 14.4 per cent rises for many of their customers.  The contract rises have been branded "hugely concerning" and "difficult to justify", especially at a time when many people across the UK are facing mounting pressures due to the cost of living crisis.  In what is a major blow to customers, many will find their contract payments rising by more than 14 per cent.   Customers saw broadband rises of almost 10 per cent last year (2022).  Mid-contract hikes usually kick in around April, which falls in line with the Consumer Price Index (CPI) plus an additional 3 per cent to 3.9 per cent.  This regulated CPI-linked price rise is preventable. There is still time for Ofcom to act and reduce the wholesale price increases that lead to these price rises.

Neil_Jones

Caveman1010 said:

I would like to call on OFCOM to stop these unnecessary annual increases.  Which?'s latest broadband survey has shown that BT Group, which includes BT, EE and Plusnet, will be pushing ahead with 14.4 per cent rises for many of their customers.  The contract rises have been branded "hugely concerning" and "difficult to justify", especially at a time when many people across the UK are facing mounting pressures due to the cost of living crisis.  In what is a major blow to customers, many will find their contract payments rising by more than 14 per cent.   Customers saw broadband rises of almost 10 per cent last year (2022).  Mid-contract hikes usually kick in around April, which falls in line with the Consumer Price Index (CPI) plus an additional 3 per cent to 3.9 per cent.  This regulated CPI-linked price rise is preventable. There is still time for Ofcom to act and reduce the wholesale price increases that lead to these price rises.

So contact Ofcom then.  They'll tell you pricing is not their responsibility.

Plenty of providers who don't include an annual rise but you'll pay more from the outset in 95% of cases.

southsidergs

You'd think these companies costs weren't increasing like everybody elses!

Fact is the cpi which is the biggest part isn't down to them

armith

southsidergs said:

You'd think these companies costs weren't increasing like everybody elses!

Fact is the cpi which is the biggest part isn't down to them

Ah - but there's the thing, their costs aren't going up, they don't actually run the broadband network, they re-sell a product owned by another company (Openreach in the main) - and their prices are actually reducing.

Basically it's all a marketing ploy. Low starting price advertised (somehow!) at £20/£25/£27.50 "per month for 24 months". The "safe" option is to go for someone like Cuckoo who tell you the real price, which is higher - but at least you know for definite what it will be. 

southsidergs

No of course I forgot these companies don't have multiple offices with hgher emergy costs for example..... 

Of course it's all a "ploy"

Caveman1010

OFCOM said the cost of providing Telecom services was dropping, so why the increase?

Caveman1010

BT, EE, Plusnet and Openreach are all part of the same company, BT Group.

southsidergs

Caveman1010 said:

OFCOM said the cost of providing Telecom services was dropping, so why the increase?

There's other costs as well! It's not as if that's the only costs they have

Why is it people think it's that simple?

SaverRate

Not as bad as Virgin Media, increasing my bill by 34%

Edit - I have just contacted Ofcom as I personally think 34% is over the top and excessive

littleboo

armith said:

southsidergs said:

You'd think these companies costs weren't increasing like everybody elses!

Fact is the cpi which is the biggest part isn't down to them

Ah - but there's the thing, their costs aren't going up, they don't actually run the broadband network, they re-sell a product owned by another company (Openreach in the main) - and their prices are actually reducing.

Basically it's all a marketing ploy. Low starting price advertised (somehow!) at £20/£25/£27.50 "per month for 24 months". The "safe" option is to go for someone like Cuckoo who tell you the real price, which is higher - but at least you know for definite what it will be. 

Openreach provide the last mile connection, they don't provide an internet service, your assertion that its just a resale is wrong. 

Xenon

Broadband providers annual price increases
Has this always been the case or is this a new thing over the last few years ?