Broadband alert: Britons hit with ‘sneaky’ costs as suppliers hike prices | Personal Finance | Finance
In recent months, many of the country’s biggest broadband providers have raised their prices by between 8.2 percent and 9.3 percent. While inflation is currently sitting at 9.9 percent, wholesale broadband costs have remained the same for two decades. Industry leaders are taking aim at the industry’s “sneaky” price hikes which are hurting customers’ pockets during the cost of living crisis.
Alex Fitzgerald, the CEO of Cuckoo Broadband, spoke exclusively with Express.co.uk about how households are losing out due to broadband price hikes.
Mr Fitzgerald explained: “Big broadband is being sneaky. They’re posting stupendous profits at a time of soaring prices whilst hard-working Brits are being squeezed.
“It’s just plain wrong. It’s time for the big boys to do the right thing and stop taking advantage of customers.
“If they’ve got the cash to post bumper profits, then they’ve got cash to stop these outrageous price increases when people are feeling the pinch across the board.”
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However, companies such as Cuckoo are opting to forgo raising their prices above the rate or in line with inflation to better support consumers during these trying times.
Putting his money where his mouth is, Mr Fitzgerald’s company has promised to freeze its prices at 2020 levels to help people looking during the cost of living crisis.
The broadband expert added: “Ofcom has a challenging job cracking down on the industry to protect people.
“Brits are being stung by unreasonable rising costs when the wholesale price of broadband has practically stayed the same for the last 20 years.
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“At Cuckoo, we’re continuing to freeze our prices at 2020 levels to help customers tackle the cost of living – and we’re fixing them there for at least 12 months. So now we know the major providers can afford it, why aren’t they doing the same?”
Earlier this week, Ofcom’s group director Lindsay Fussell cautioned broadband suppliers on the dangers posed by raising their prices by too much.
On annual price rises in April next year, the media regulator’s representative said: “Of course, we recognise that inflation is a wider, macro-economic problem that affects some wholesale costs, as well as customers.
“While Ofcom does not regulate retail prices, we want companies to think very carefully about what is justified during an exceptional period of hardship for many people.”
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In her speech, the telecoms expert highlighted ways broadband suppliers should be assisting customers as inflation continues to put pressure on everyday people.
She particularly highlighted social tariffs, which Ofcom has cited as the best way to provide targeted support for those on means-tested benefits.
Ms Fussell said: “Here are some ways that broadband and mobile companies can help. First, by continuing to offer good deals.
“The cheapest superfast broadband deals, for example, are affordable for most people at around £22 a month.
“Second, by promoting cheaper ‘social tariffs’ for the most financially vulnerable.
“I’m pleased that, since we highlighted this issue back in February, the number of people signing up has more than doubled.
“But that still leaves millions of homes, who qualify for benefits, missing out on broadband savings of around £150 every year.
“Everyone can do more to make these offers visible and easy to take up. I believe there is a moral responsibility to do so.”
