Over nine million broadband consumers are unaware that they are facing the biggest in-contract price rise in years, research suggests.
The findings have been reported by Hyperoptic, a UK broadband provider, which surveyed 2,000 broadband consumers about upcoming price rises.
Several broadband providers raise their in-contract prices every year in line with the Consumer Price Index (CPI) rate of inflation, which recently hit 5.4%, with energy price rises a driving factor behind this increase.
Price changes could hit households from as early as 31 March 2022, and more than 15 million consumers could be impacted by the following price rises:
- BT is set to increase bills by 9.3% - an average yearly increase of £45.33
- EE is set to increase bills by 9.3% - an average yearly increase of £38.39
- Plusnet is set to increase bills by 9.3% - an average yearly increase of £24.92
- TalkTalk is set to increase bills by 9.1% - an average yearly increase of £35.85
- Vodafone is set to increase bills by 9.3% - an average yearly increase of £31.28
These companies represent over 56% of the UK broadband market. Sky has yet to confirm whether it will be raising in-contract prices but its website states “prices may change during your contract”, and its customers were hit with price rises of up to £72 per year in 2021.
Virgin, meanwhile, announced this month that it would be increasing its broadband prices by roughly £4.70 a month, but confirmed that all affected customers can leave their contract without paying any early exit charge.
“It is Disappointing”
Hyperoptic’s research revealed that 60% of affected broadband consumers did not know about the upcoming price rises (around nine million people), and 63% said they felt the upcoming rises are unfair.
Charles Davies, MD ISP at Hyperoptic said: “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. It is disappointing to see so many operators choosing to raise prices at this time.”
The survey also revealed that 57% of affected customers will now look to swap to a provider that doesn’t impose in-contract price rises.
Hyperoptic calculated predicted price rises via average price increases, multiplied by customer base and based on market share data taken from Choose’s UK home broadband market share overview.
