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Price Increase Of Broadband Plans In 2022

Already broadband plans in the UK have become costlier. Millions of families in the UK are affected by high broadband bills. Major broadband providers are looking to increase the broadband prices again in March. It is expected that broadband prices will increase by 11 percent in March. This will be the largest hike in broadband prices in the entire decade. The price rise is not constant amongst the providers, and some of them have raised the plan prices on an ad-hoc basis. For example, Virgin has raised the prices by 12 percent, whereas BT has increased by only 6 percent. However, a lot depends on the demand of a particular plan, and the services included in it. Even Talk Talk which is also one of the UK’s top broadband services providers followed the suit.

Why sudden broadband price hikes in the UK?
There is no doubt that sudden price hikes of broadband plans have caught the customers by surprise, but this is an action which was unavoidable as per industry experts. As per the industry experts, this price hike is based on the CPI (Consumer Price Index) rate of inflation. As published, for the month of January, the CPI rate has been 5.4 percent in the UK. Even though the CPI rate is less than six, the price hikes average around 10-12 percent, this is because each of these providers adds their own margin to the overall CPI increase, to increase their operating profit. There is nothing wrong with this practice, and it is widely followed across multiple industries.

Not all the providers have increased the broadband prices, few providers such as KCOM which provides its services in Yorkshire and Lincolnshire have kept the broadband plan prices unchanged for the year. They simply didn’t want to burden the customers with increased prices.

What should you do now?
As a consumer, analyze the new contract prices that will be offered by your service provider. If you feel the prices are too high, you can definitely refuse to renew the contract and exit. There are provisions that allow consumers to exit without paying any penalty. However, please check the terms and conditions listed in the contract, to know more.

In case, the annual prices are already part of the contract with your broadband service provider, then you don’t have many options apart from accepting the new price. Because you have already agreed to the annual price as per the signed agreement between you and the broadband services provider. The broadband company might still allow you to exit, with some penalty imposed. For example, you have signed a 24 month contract with the broadband services provider, and the price increases after the first year, then you don’t have any choice except to accept the new price or pay an exit penalty.

Who will benefit?
Those customers who don’t have a contract and pay monthly or quarterly can exit anytime as per their wish. They can shop for new plans as per their pricing requirements. Most of the customers go for long-term contracts thinking it will cost less, but completely unaware of risks such as price hikes after the first year.

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