Research reveals that over nine million broadband consumers unaware they are set for biggest in-contract price hike in years[i]

LONDON, Jan. 25, 2022 /PRNewswire/ -- Research today reveals that over nine million consumersⁱⁱ are unaware that their broadband bills are set to increase, according to research by Hyperoptic, the UK's hyperfast broadband provider. Every year BT, EE, Plusnet, Vodafone, O2, TalkTalk, Shell Energy, and others raise their 'in contract' prices in line with the Consumer Price Index (CPI) rate of inflation, which recently hit 5.4 per cent. They then add up to 3.9 per cent.ⁱⁱⁱ These companies represent over half (56 per cent^iv) of the UK broadband market.  

Over 15 million consumers^v are set to be impacted by these price rises, which come into effect from as early as 31 March 2022. With CPI at a thirty-year high, consumers will soon be hit with the following price hikes:

• BT will increase bills by 9.3 per cent - an average yearly increase of: £45.33^vi
• EE will increase bills by 9.3 per cent - an average yearly increase of: £38.39^vii
• Plusnet will increase bills by 9.3 per cent - an average yearly increase of: £24.92^viii
• TalkTalk will increase bills by 9.1 per cent - an average yearly increase of: £35.85^ix
• Vodafone will increase bills by 9.3 per cent - an average yearly increase of: £31.28^x

Hyperoptic commissioned a nationally representative survey via Censuswide^xi of 2,000+ consumers, who will be impacted by these in-contract price rises, to get insight into consumer sentiment. Findings include:

• 60 per cent of affected customers did not know about the upcoming price rises, which equates to over nine million consumers^xii
• Nearly half (47 per cent) feel misled by their broadband provider
• 63 per cent of affected customers feel these price rises are unfair
• 59 per cent would have tried to negotiate a better deal from their provider if they had been aware
• Nearly half (48 per cent) would not have signed their contract if they had been aware
• 57 per cent of affected customers will look for a provider that doesn't impose in-contract price rises when they swap provider

Charles Davies, MD ISP, Hyperoptic:

"Given the increase in the cost of living, any price rise is hitting already squeezed homes. With rising living costs, our industry could have bucked the trend and helped consumers. Most costs in fixed broadband come from building the network. Once built, the cost of maintaining the infrastructure is much lower. That means our industry can mitigate the impact of inflation, much more so than other industries. It is then disappointing to see so many operators choosing to raise prices at this time.