MSE News: Chancellor to investigate inflation-busting mobile and broadband price hikes

MSE_Petar

The Chancellor Jeremy Hunt has committed to investigating mid-contract, above-inflation mobile and broadband price hikes. In an interview with MoneySavingExpert.com founder Martin Lewis, Mr Hunt said he would write to the competition and markets watchdog and "get to the bottom of it".

Read the full story:
''Terrible' inflation-busting mobile and broadband price hikes to be probed by Chancellor after Martin Lewis interview'

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MikeJXE

Join the queue behind the Post Office 

It's an election year anything could happen while they ( Conservatives fight for survival 

born_again

Thought this was already being investigated by Ofcom?

Anyone would think that it's a election year... And we live in a country with no problems that need sorting.

Ian_Leckenby

My supplier UPP has been taken over by Virgin Media, they are going to rip up my contract with 30 days notice, so my 24 month fixed fee £30 for 500Mb disappears... but I can have an £87 Virgin box, that will go up again in April ! Same but different as the small suppliers get subsumed

MattMattMattUK

I do not understand why people get so worked up about "above inflation" rises, do they take the view that suppliers can never increase margin? Shop around, change supplier, read the contract before signing one with a mid-contract rise. 

Desmond_Hume

MattMattMattUK said:

I do not understand why people get so worked up about "above inflation" rises, do they take the view that suppliers can never increase margin? Shop around, change supplier, read the contract before signing one with a mid-contract rise. 

I don’t get it either. My mobile phone bill has been £8pm for 4 years. After 12 months, O2 increase it.  So all I do is go back on USwitch, pick the exact same contract at £8 and sign up. Takes 5 minutes. 

400ixl

Whilst I don't get it either as it isn't hard to comprehend, but unfortunately a large number of people either don't think for themselves and check the terms they are signing up to or don't understand them.

For shorter term contracts of 12/18/24 months it would be good to see some of the risk taken by the business and to build the predicted changes into their rates and make it flat for the contract period.

FreeBear

400ixl said:

Whilst I don't get it either as it isn't hard to comprehend, but unfortunately a large number of people either don't think for themselves and check the terms they are signing up to or don't understand them.

For shorter term contracts of 12/18/24 months it would be good to see some of the risk taken by the business and to build the predicted changes into their rates and make it flat for the contract period.

If I take out a fixed term contract, I don't expect to be hit with a mid term increase of an unspecified amount. It help me to budget knowing will be paying exactly the same for the next 18 months. Virgin and others have been able to do it in the past, so why change now....

That said, did the usual "cancel contract" tango, and Retentions have offered a new contract at a lower price, and even after an RPI+3.9% I should still be paying less. I assume they are still making a profit on what they are charging me, so why sour customer satisfaction with a midterm hike.

Money_Grabber13579

Desmond_Hume said:

MattMattMattUK said:

I do not understand why people get so worked up about "above inflation" rises, do they take the view that suppliers can never increase margin? Shop around, change supplier, read the contract before signing one with a mid-contract rise. 

I don’t get it either. My mobile phone bill has been £8pm for 4 years. After 12 months, O2 increase it.  So all I do is go back on USwitch, pick the exact same contract at £8 and sign up. Takes 5 minutes. 

Which is exactly the issue. They have shown that they are willing to continuing offering new contracts at exactly the same price so the story they spin about having to increase prices in the middle of a contract because their costs have gone up is a load of bull.