{"id":21143,"date":"2020-02-15T07:34:18","date_gmt":"2020-02-15T07:34:18","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=21143"},"modified":"2020-02-15T07:38:56","modified_gmt":"2020-02-15T07:38:56","slug":"post-contract-broadband-isp-price-rises-still-causing-headache","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/02\/post-contract-broadband-isp-price-rises-still-causing-headache.html","title":{"rendered":"Post Contract Broadband ISP Price Rises Still Causing Headache"},"content":{"rendered":"

Consumer magazine Which?<\/a> has today published yet another “Loyalty Penalty<\/em>” focused survey of 7,517 members, which claims that 68% of current broadband ISP deals from the big operators see UK customers being hit with significant price hikes when their contract ends (some prices jumped by as much as 89%).<\/p>\n

As usual the issue relates to the common practice of discounting, which exists across nearly all service sectors and is by no means unique to broadband. For example, ISPs will often try to entice new customers by offering big discounts during the first 12-24 month contract term, but after that the price (post-contract) will often jump significantly. Just to make matters worse, some providers are very poor at highlighting their post-contract prices.<\/p>\n

Otherwise the magazine’s survey noted that 58% of broadband customers had been with their current ISP for 2 years+, which is longer than the maximum allowed consumer contract term of 24 months (i.e. many people choose to remain with their ISP post-contract). A previous study similarly found that those who switched ISP or haggled for a lower price were able to save an average of \u00a3120<\/strong> a year (here<\/a>).<\/p>\n

Results – How long have you been with your ISP?<\/strong><\/span>
\nUp to 6 months \u2013 11%
\nMore than 6 months up to 1 year \u2013 14%
\nMore than 1 year and up to 2 years \u2013 15%
\nMore than 2 and up to 3 years \u2013 12%
\nMore than 3 years \u2013 46%
\nDon\u2019t know \/ can\u2019t recall \u2013 2%<\/p><\/blockquote>\n

NOTE:<\/strong> Which?’s analysis – conducted 5th Feb 2020 – included deals from BT<\/a>, EE<\/a>, John Lewis, Plusnet<\/a>, Post Office, Sky Broadband<\/a>, SSE, TalkTalk<\/a>, Utility Warehouse and Zen Internet<\/a> (but oddly not Virgin Media<\/a>). No details were provided in their press release.<\/div>\n

In fairness such discounting doesn’t have to be a concern, provided the ISPs make their post-contract prices completely clear – ideally right alongside any discounts. Equally it\u2019s important to highlight that not all ISPs adopt the same model and the majority of smaller providers, which may offer advanced features (static IP etc.) and better quality, simply charge a set monthly fee that rarely ever changes.<\/p>\n

Nevertheless it’s important to point out that Which?’s survey is timed to coincide with the start of Ofcom<\/a>’s new end-of-contract notification system. The intention of this is to make broadband, phone and mobile customers aware of when their contract ends and what deals are available to them if they choose to stay or upgrade etc. (full details here<\/a>).<\/p>\n

Natalie Hitchins, Which? Head of Home Products and Services, said:<\/strong><\/p>\n

“Our research shows that far too many people are paying more than they need to for broadband, so this rule change to ensure people are notified before their contract ends \u2013 and potentially before their bills go up \u2013 is a positive step.<\/p>\n

Anyone who thinks they are out of contract, paying too much or not happy with their current service should not wait until they receive a notification, you might find you save yourself hundreds of pounds a year if you haggle or switch.”<\/p><\/blockquote>\n

On top of that the regulator has also coaxed various new consumer fairness commitments out of the major providers, which are also summarised at the link above for contract notifications. Meanwhile savvy consumers already know that the best way to keep your bills down is to switch to a different provider or haggle for a lower price at the end of your minimum contract term (see our Retentions Tips<\/strong><\/a> article).<\/p>\n

Richard Tang, Chairman and Founder of Zen Internet<\/a>, said:<\/strong><\/p>\n

“Poor service and bad practice such as mid or end of contract price hikes mean consumers are not getting value for money from their broadband providers. Too often, they are hung out to dry, and this has needed to change for a while. Ultimately end of contract notifications are a great thing for consumers; the notifications help consumers to make informed decisions, to ensure that they are on the best, fairest deal for their needs.<\/p>\n

All too often consumers are faced with price hikes during their contract, and Ofcom<\/a> needs to address this too because it is just not right that big companies can change the contracts they have with individuals as and when they want. It is not an issue with Zen thanks to our Price for Life guarantee which promises we won\u2019t increase the price so long as a customer stays with us. Our ethos is to focus on people \u2013 our staff, customers, and suppliers \u2013 first. This is all part of our commitment to make sure that our customers have the best experience possible.”<\/p><\/blockquote>\n

We should point out that even Which? adopt a similar strategy when selling magazines (e.g. they’re selling a 1 month trial for \u00a31<\/a> and this automatically rises to \u00a312.75 per month thereafter, unless you notify them to stop). Similarly Which? is arguably guilty of feeding the very problem that they aim to highlight by frequently running stories on new broadband deals that also fail to highlight the post-contract prices (e.g. here<\/a> and here<\/a>). People in glass houses.<\/p>\n

Further changes are expected from Ofcom<\/a> in the future in order to help protect vulnerable consumers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Consumer magazine Which? has today published yet another “Loyalty Penalty” focused survey of 7,517 members, which claims that 68% of current broadband ISP deals from the big operators see UK customers being hit with significant price hikes when their contract ends (some prices jumped by as much as 89%).<\/p>\n","protected":false},"author":1,"featured_media":21148,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[34],"class_list":["post-21143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nPost Contract Broadband ISP Price Rises Still Causing Headache - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Consumer magazine Which? has today published yet another "Loyalty Penalty" focused survey of 7,517 members, which claims that 68% of current broadband ISP\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/02\/post-contract-broadband-isp-price-rises-still-causing-headache.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Post Contract Broadband ISP Price Rises Still Causing Headache - ISPreview UK\" \/>\n<meta property=\"og:description\" content=\"Consumer magazine Which? 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