MSE News: Mid-contract broadband and mobile price hikes to be reviewed by regulator

SaverRate

k18dan said:

Why are mid-contract price rises allowed at all?

When I sign up to a service/subscription for 12/18/24 months I want to know exactly how much its going to cost each month before I decide if I can afford it. How are you meant to budget if the price can change mid-contract? 

Because its in the T&C's of the contract. 

If its not they allow you to cancel or negotiate like Virgin Media this year (next year its in the T&C's)

I dont agree with it either infact price increases mid contract especially of this years nature infuriates me. Alot of people will just roll over and accept them. Others will do things about it.

Ive just worked out that for two family members its cheaper to pay off their contract, sell their phones then take out a new contract with a new phone for £12 a month less than their current contract with the price increase plus potentially £65 made on selling the phone vs paying off the existing contract. Crazy!!

TractorFactor

k18dan said:

Why are mid-contract price rises allowed at all?

Because nobody has challenged them.

Can I be an aeroplane pilot and half way through the journey, demand 14.4% + 3.9% extra otherwise they're off the plane?
No - you pay for the service at a fixed rate and that's that.

Swipe

TractorFactor said:

k18dan said:

Why are mid-contract price rises allowed at all?

Because nobody has challenged them.

Can I be an aeroplane pilot and half way through the journey, demand 14.4% + 3.9% extra otherwise they're off the plane?
No - you pay for the service at a fixed rate and that's that.

It's hard to challenge them when they are all at it

boatman

A company is in a far better position to adapt than people, for many years when you entered a contract the price was fixed for the term of the contract. If you can fix a mortgage for 5 or 10 years, it shouldn't be accepted that a phone company isn't able to look 1 or 2 years into the future for a £20/month contract.. it's a total scam, and should not have been allowed. OFCOM again prove they are in the pockets of business not the consumer.

ladruid

While ever customers have apathy to accept the status quo, companies will push the boundaries. In the end the contract is a voluntary thing the customer agrees to. If they don't like the terms they should not sign up for it.

Contacts like this only exist because customers sign up to them. If everyone moved to a company that offers monthly rolling contracts, then fixed contracts would fade away.

Neil_Jones

ladruid said:

While ever customers have apathy to accept the status quo, companies will push the boundaries. In the end the contract is a voluntary thing the customer agrees to. If they don't like the terms they should not sign up for it.

Contacts like this only exist because customers sign up to them. If everyone moved to a company that offers monthly rolling contracts, then fixed contracts would fade away.

Except they won't because the rolling month contracts are more expensive in the first place.

ladruid

Neil_Jones said:

Except they won't because the rolling month contracts are more expensive in the first place.

Maybe I should have mentioned that I am coming at this from a mobile perspective, where monthly rolling contracts are not more expensive, they can be significantly cheaper and offer more flexibility.

Take the cheapest Sim Only from O2 for example, they do a 24 month contract now... that's two forced rises within that contract! They charge £13.00 for 3GB with unlimited calls/text, another provider like Giffgaff (uses the same infrastructure) offer monthly rolling at £8 for 5GB with unlimited calls/text.

Fixed broadband is a whole other barrel of fish where you are all but forced to accept a long contract.

RaymondTerrific

Is it time to admit that this campaign/review has been an abject failure and actually made things worse.

Most broadband providers that have moved over to the pounds & pence model are quoting £3 p/m increase each year.

When the cheapest bb deals are around £20 pm that's a 15% increase year on year.