UK ISPs to make pricing fairer for out-of-contract customers

Charlotte Whyatt • 27 Sep 2019

A recent review highlighted that these customers tend to pay an average of £8 to £9 more for broadband every month.

BT, Sky and several of the UK’s other top broadband providers have voluntarily agreed to measures which’ll make pricing fairer for out-of-contract customers. 

Their decision came after a review of pricing practices by Ofcom highlighted that these customers tend to pay around £8 to £9 more for their broadband every month. 

The industry regulator was concerned that this group was largely comprised of vulnerable people who aren’t confident enough to shop around for a new deal 

All of these measures will come into effect by March 2020 and include:

• Out-of-contract customers with BT, Sky and TalkTalk will now have access to the same deals as new broadband customers
• BT customers who don’t have access to superfast broadband won’t be required to pay more than entry-level superfast customers 
• Talk Talk, Plusnet, EE and BT will all protect their out-of-contract customers from above-inflation price rises. 
• Virgin Media and TalkTalk will carry out annual price reviews with their vulnerable customers to ensure they’re on a suitable deal. The proper discounts will applied where applicable. 

It’s estimated that around 40% of broadband customers, which equates to 8.8 million people, are currently on an out of contract deal in the UK.

“Broadband customers who are out of contract can make big savings – around £100 a year on average – by picking up the phone to their current provider and signing up to a better deal,” said Lindsey Fussell, Ofcom’s consumer group director. 
 
"And in the future, everyone will be told about the best tariff on offer. Thanks to the commitments we've secured from major broadband firms, many customers – including the most vulnerable – will pay less."

Source: The Register