Broadband firms promise no surprise hikes
Major broadband and mobile providers have agreed to end unexpected mid-contract price rises under a new government-backed Telecoms Consumer Charter.
The agreement was announced on Wednesday 11 February after a roundtable hosted by the Chancellor and Technology Secretary Liz Kendall.
Companies including BT, Virgin Media O2, VodafoneThree, Sky and TalkTalk have signed up to the charter.
Industry bodies the Independent Networks Cooperative Association and the Internet Service Providers Association are also supporting it.
Under the commitments, customers signing up to new mobile or broadband contracts will be told clearly what they will pay, with no unexpected increases during the contract period. Any future price changes must be set out up front.
The Department for Science, Innovation and Technology said customers facing financial difficulty will be offered the chance to move to cheaper plans without penalty and agree manageable payment plans.
Cheaper social tariffs are available to people receiving certain government benefits.
Ofcom has previously estimated eligible households could save up to £220 per year.
Government figures state nearly seven in 10 eligible broadband customers had not heard of the tariffs.
Providers have agreed to proactively signpost social tariffs to eligible customers to improve take-up.
Liz Kendall said: “Broadband and mobile customers deserve to be treated fairly and not face sudden jumps in their bills.
“Following action by this government, telecom companies have now agreed to end unexpected mid-contract price rises and making social tariffs easier to access.
“These changes will make a real difference to millions of consumers across the country and help with the cost-of-living pressures.”
The announcement comes as the government launches a Mobile Market Review examining long-term investment in networks and the delivery of standalone 5G to populated areas by 2030.
Allison Kirkby, chief executive of BT Group, said: “We led the industry on price transparency and fairness, and now we’re calling on other mobile networks to do the same.”
Lutz Schüler, chief executive of Virgin Media O2, said the charter “strengthens predictability and transparency for consumers”.
Devesh Raj, chief operating officer at Sky UK, said the company was “proud to support this voluntary Charter, which strengthens transparency and ensures customers have clear, straightforward information about their services.”
Paddy Paddison, chief executive of the Independent Networks Cooperative Association, said: “Customers should be able to understand, in plain pounds and pence, what they are signing up to and what they can expect to pay.”
Steve Leighton, chair of the Internet Service Providers Association, said it was “easier to switch now than ever before”.
The government said the Mobile Market Review would gather evidence on investment challenges, technological developments and market changes.
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