{"id":32919,"date":"2022-11-16T10:11:40","date_gmt":"2022-11-16T10:11:40","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=32919"},"modified":"2022-11-16T10:11:40","modified_gmt":"2022-11-16T10:11:40","slug":"hyperoptic-survey-finds-confusion-over-broadband-price-hikes","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/11\/hyperoptic-survey-finds-confusion-over-broadband-price-hikes.html","title":{"rendered":"Hyperoptic Survey Finds Confusion Over Broadband Price Hikes"},"content":{"rendered":"

A new survey commissioned by full fibre ISP Hyperoptic<\/a>, which was conducted by Attest during October 2022 and surveyed 1,000 UK broadband bill payers, has found that many consumers continue to be confused by the language that providers use when communicating mid-contract price hikes.<\/p>\n

The survey found that more than 80% don’t know what CPI (Consumer Price Index) refers to, which is important because many of the market’s largest broadband providers have – over the past three years – gradually adopted a ‘CPI + 3.9%<\/em>‘ policy of annual price hikes (BT<\/a> was the first to introduce this approach).<\/p>\n

The CPI is a general measure of inflation (i.e. the increase in the prices of goods and services), which reflects how much more we’re all having to pay for such things. As such if CPI inflation is 11.1% (as it is today) when a provider’s annual price hikes policy kicks-in, then an ISP adopting the CPI + 3.9% rule will – on average – increase its prices by 11.1% + 3.9% (total of 15%) to compensate.<\/p>\n

Apparently, half of the survey respondents said they felt “confident<\/em>” about working out a percentage rise to their bill, but only 23% got the figure right when trying to calculate the actual sum (they were allowed to use phones and calculators) and 27% said they didn\u2019t know or that it was “too complicated<\/em>“. In fairness, the impact can actually vary between different packages and add-ons, thus simply applying 15% won’t always give the correct outcome.<\/p>\n

In response, Hyperoptic<\/a>, which has long campaigned against mid-contract hikes (admittedly it’s also a clever bit of self-promotion on their part), has written to the heads of Ofcom<\/a>, DCMS, and the ASA and CAP (Committee for Advertising Practice), to encourage “emergency measures to protect consumers during the cost-of-living crisis<\/em>“.<\/p>\n

The letter calls for:<\/strong><\/span><\/p>\n

\u27a4 an immediate requirement that advertised price claims must clearly set out any mid-contract price rises,<\/p>\n

\u27a4 that advertising includes a clear explanation of the calculation, and<\/p>\n

\u27a4 the real impact it will have on what customers are going to have to pay.<\/p><\/blockquote>\n

The Committees of Advertising Practice (CAP and BCAP) – sister bodies to the Advertising Standards Authority<\/a> (ASA) – are currently running a consultation on new guidance that could require information about mid-contract prices hikes to be more prominently stated in ads (here<\/a>). Hyperoptic<\/a>’s latest lobbying effort is thus being timed to coincide with the closure of that consultation tomorrow.<\/p>\n

Dana Tobak, CEO of Hyperoptic, said:<\/strong><\/p>\n

“The big broadband providers are taking advantage of inflation rates to boost their revenues, at the expense of people already struggling to cope with the cost-of-living crisis. This behaviour is eroding trust in the industry.<\/p>\n

The practice of forcing mid-contract price rises on people is causing real consumer harm, and we want to see big changes so that broadband users are better informed and protected.<\/p>\n

At the very least, the price you pay throughout the contract should be transparent in all advertising. We also want Government and Ofcom<\/a> to go further, so that if a price increases mid-contract, you should be able to turn to a new provider without paying early termination charges.”<\/p><\/blockquote>\n

The outcome of the current consultation seems almost certain to require greater transparency from broadband and mobile providers, as opposed to the usual approach of merely mentioning the policy in a piece of small print. But it will take time for the advertising authority to review the consultation responses, so we suspect it may be early or mid-2023 before the final approach is known.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new survey commissioned by full fibre ISP Hyperoptic, which was conducted by Attest during October 2022 and surveyed 1,000 UK broadband bill payers, has found that many consumers continue to be confused by the language that providers use when communicating mid-contract price hikes.<\/p>\n","protected":false},"author":1,"featured_media":27692,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[99,148,34],"class_list":["post-32919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-asa","tag-hyperoptic","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nHyperoptic Survey Finds Confusion Over Broadband Price Hikes - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new survey commissioned by full fibre ISP Hyperoptic, which was conducted by Attest during October 2022 and surveyed 1,000 UK broadband bill payers, has\" \/>\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\/2022\/11\/hyperoptic-survey-finds-confusion-over-broadband-price-hikes.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hyperoptic Survey Finds Confusion Over Broadband Price Hikes - 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