Low Cost UK ISP TalkTalk Launches Fairer Broadband Charter

ISP TalkTalk has today announced the launch of their new three-point “Fairer Broadband Charter,” which seems to have been largely designed to promote some of the provider’s key selling points and among other things “challenges the telecoms industry” to end mid-contract broadband price hikes.

Over the years we’ve perhaps developed somewhat of a cynical view where Customer Charters are concerned, not least because they tend to either idealistically promise something that is not deliverable to everybody as claimed or merely act as a clever advertising campaign for features that a company already offers and thus wishes to shout about.

In fairness TalkTalk has in recent years made some good improvements to their products and so quite understandably they’ve decided to highlight those, while at the same time criticising some of their rivals for not having done the same.. yet. But no doubt some will feel as if the ISP still hasn’t gone far enough.

3 Key Points of TalkTalk’s Fairer Broadband Charter

1. Ending unfair price rises:

“It’s time to end unfair mid-contract price rises. We are challenging all providers to guarantee that the price customers sign up to will be the price they pay.”

Customers can feel cheated when providers increase prices mid-way through a contract. TalkTalk is the only major broadband provider to guarantee no mid-contract broadband price rises across all its plans. It’s an issue of trust. If customers sign a contract, they expect it to be honoured.

2. Delivering what we promise:

“We are challenging all providers to introduce a connection guarantee – allowing all new fibre customers to walk away if the speed and reliability of services falls short of what they were promised.”

Customers need to have confidence that they’ll get what they were promised. That’s why we’ve introduced a Great Connection Guarantee, meaning new fibre customers are free to leave at any point for the first 30 days of going live if they’re unhappy with the connection. Our standard broadband customers who upgrade to fibre can also make the most of this initiative. If they are unhappy with their upgrade, they can rollback to standard broadband without penalty in the first 30 days of going live.

We are now looking at extending this initiative to new standard broadband customers.

3. Rewarding loyalty:

“We are challenging all providers to proactively write to customers before their contract expires, warning them about any price rises and offering the option to re-contract at lower prices than standard out-of-contract pricing. That gives power back to customers and avoids hidden price increases.”

For too long, providers have avoided warning customers when their contract is about to expire. That leaves too many customers paying more than they realise. Some customers may prefer the flexibility of being out of contract, but providers should warn them and allow customers to make an informed choice, rather than hoping they don’t realise their bills have gone up.

We already contact customers to let them know their price will change when their contract ends, but to ensure they take advantage of our best value deals we’re taking this a step further.

We will:

* Contact all customers before they come out of contract, offering competitive packages so they can continue benefiting from fixed, value for money broadband that suits their needs.
* Always aim to offer the best available deals and clearly state in the communications that other promotions may be available at any given time.
* Contact all customers, including those out-of-contract, on an annual basis with a ‘value update’. This will allow them to review their products and services helping to ensure they get the best deal for them.

It’s worth pointing out that Ofcom has already proposed new rules, which will require phone / broadband ISPs, Pay TV and mobile operators to inform customers when they approach the end of their minimum contract term (here), but this won’t be introduced until later in 2019.

At the same time the UK Government’s Competition and Markets Authority has opened a “super-complaint” to examine how consumers who remain loyal (e.g. stay with the service at the end of their contract) can end up paying “significantly more” than new customers (here), although we don’t yet know what the outcome of that will be.

In other words, the rest of the market will eventually need to do some of what TalkTalk are already doing, whether they like it or not.

Tristia Harrison, CEO of TalkTalk, said:

“Telecoms companies have been ripping-off consumers for far too long. The industry has to change to rebuild trust with consumers. We led the way two years ago and became the first provider to guarantee no mid-contract price rises. It’s proved hugely popular and today we’re going even further. Our Fairer Broadband Charter sets out three simple ways we’ll put customers first.

I’m challenging our rivals to follow our lead so that the whole industry can rebuild trust with customers.”

As part of today’s announcement TalkTalk also conducted a poll of 2,000 UK adults with YouGov, which found that 87% of consumers think it’s unfair that providers raise their broadband price mid-contract and 54% would support a complete ban on these price hikes. Meanwhile 62% say they don’t know when their contract ends, as they’re left to roll onto higher out-of-contract rates, which is something that other surveys have similarly echoed.