Why do broadband providers increase their charges?

In 2021, several broadband and telecom companies implemented in-contract price increases that are tied to inflation and percentage changes.

While general consumer law does not prohibit companies from raising prices during the contract period, they must do so fairly. Some telecoms companies opt to increase prices, while others do not. In some cases, customers receive 30 days’ notice and the option to cancel their contracts without penalty. #

Alternatively, price increases are specified in customers’ contracts at the outset.

Ofcom, the regulatory authority for the UK communications industry, has stringent regulations in place for providers who include price increases in their contracts. These rules require providers to be transparent with customers about any planned price increases before they sign up for the service.

Ofcom has launched a review into this particular practice.

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