Britain examines inflation-linked hikes in broadband bills (updated)

Hutchison Telecommunications Hong Kong Holdings

09/02/2023 10:16

(Adds comments, background)
       LONDON, Feb 9 (Reuters) - Britain's telecoms regulator
said on Thursday it was concerned that inflation-linked hikes in
broadband and mobile bills were causing uncertainty for
customers, as it launched a review of in-contract price rises.
    Many consumers are facing prices rises of above 14% in the
coming months under the terms of contracts with suppliers such
as market leader BT  BT.L .
    Regulator Ofcom said its research showed that around a third
of mobile and broadband customers did not know whether their
provider could increase prices mid-contract, while around half
did not know how rises were calculated.
        It said it would examine if tougher protections were
needed.
        "Customers need certainty and clarity about what they
will pay over the course of their contract," said Ofcom's
Director of Telecoms Consumer Protection Cristina Luna-Esteban.
    "But inflation-linked price rises can be unclear and
unpredictable. So we're concerned that providers are making it
difficult for customers to know what to expect."
    BT raises prices by inflation plus 3.9% every year, equating
to 14.4% on March 31. Vodafone  VOD.L  and TalkTalk will impose
similar increases. Virgin Media plans to increase bills by an
average 13.8% in April or May, and has said it will move to
inflation-linked rises next year.
        Broadband and mobile providers have defended price
rises, saying they face rising costs such as energy. They also
say customers are using more data than ever before and are
benefiting from faster services. 
 (Reporting by Paul Sandle; editing by William James and Arun
Koyyur)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))