Prepare for a hit to your wallet, as mobile phone and broadband bills are slated to increase significantly from the beginning of April. Consumer watchdog Which? has denounced the move as ‘unconscionable’, and major telecom providers, including BT, EE, O2, and PlusNet, are anticipated to reveal their plans shortly after the upcoming CPI inflation announcement on January 17.
Consumer Outcry and Watchdog’s Plea
Amid concerns of an impending ‘stealth tax,’ telecom companies are facing backlash, with Which? urging them to halt any ‘unfair and unpredictable’ price hikes. Ofcom, the government’s regulatory body, has proposed a ban on this practice, citing potential ‘substantial consumer harm.’
Customers are caught in a ‘lose-lose choice’ scenario, facing either financial strain or exit fees, leaving them at the ‘mercy’ of providers. The anticipated £400 million revenue from the price hikes in April is raising eyebrows and amplifying worries about affordability.
Last year’s monthly bill increases of up to 17% have already left many customers grappling with unexpected financial burdens. Which? emphasizes the need for telecom firms to reconsider their plans, aligning with proposed regulatory changes.
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Industry Accountability and Public Response
The CEO of Zen Internet, Richard Tang, acknowledges the industry’s historical lack of transparency, emphasizing the importance of providers offering clarity and certainty regarding broadband service costs.
Chancellor Jeremy Hunt has been made aware of the issue, promising to involve the Competition and Markets Authority after being challenged by financial journalist Martin Lewis. Both Which? and Lewis are set to submit evidence to Hunt in the coming days, seeking intervention.
Ofcom’s warning about potential missed opportunities for cheaper broadband with social tariffs underscores the broader challenges in the industry and the impact on consumer choices.
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