UK Broadband Customers Cynical About ISP Price Hikes, Survey Finds

A recent survey by Ipsos UK has revealed that over 40% of Britons believe broadband and phone providers are raising prices mainly to boost profits, rather than to cover increased costs. The research, which polled 993 adults across Great Britain in early March, highlights growing public cynicism about the motivations behind annual price increases from utility companies and telecom providers.

Customers Feel Locked Into Price Escalators

While some internet service providers (ISPs) argue that mid-contract price hikes are necessary to fund network upgrades and rising operational expenses, many customers feel they are being taken advantage of once locked into a contract. “Once you’ve signed, you’re locked into an escalator of price rises which don’t reflect reality,” said Sarah Thompson, a London homeowner. “They are there purely to hide the true cost of what you’ve committed to over the contract period.”

The survey found that 43% of respondents believe utility companies are raising prices mainly to increase profits, with 42% feeling the same about broadband and phone providers. This sentiment was echoed by Manchester resident David Hughes, who stated, “They tell me they need me to pay £90 for the same service in order to fund the network due to rising costs, but new customers pay £70 for the same package. It makes no sense.”

Smaller ISPs Avoid Mid-Contract Hikes

Notably, not all ISPs engage in mid-contract price increases. Many smaller providers and alternative networks often maintain more stable pricing that rarely changes during the minimum contract term. “If you can’t honour a price for 2 years, then you shouldn’t offer a 2 year deal at low prices to begin with,” said Glasgow-based IT consultant Michael Stewart. “Doing so is dishonest and allows providers to con people with attractive prices only to lock them into a spiral of increases.”

Experts Suggest Averaging Out Price Rises

Some industry experts suggest that companies could avoid the perception of greed by averaging out potential price rises and promoting themselves as having no mid-contract increases. “Even if the overall cost is the same, chances are people will feel like it’s less greedy than mid-contract hikes,” explained telecom analyst Emma Wilson. “It’s about transparency and building trust with customers.”

Vulnerable Customers Hit Hardest

The survey also revealed that elderly and vulnerable customers are often hit hardest by out-of-contract price increases. In some cases, older customers with TV-only packages were paying over £100 per month, far exceeding the list price for out-of-contract services. “The system just keeps upping the price every year without checking if someone is over the out-of-contract list price,” said consumer rights advocate Laura Davies. “It’s milking customers in that position, let alone the elderly or vulnerable.”

Calls for Stronger Regulation

Consumer groups and some industry figures are calling for stronger regulation to protect customers from mid-contract price hikes. “Ofcom not banning mid-contract price rises seems rather short-sighted,” said Rik Henderson, a telecom industry veteran. “If low prices cause issues, then don’t offer long-term contracts, or offer sustainable prices for the term on offer.”

As the cost-of-living crisis continues to squeeze household budgets, the debate around broadband price increases is likely to intensify. With many customers feeling trapped by mid-contract hikes and cynical about ISPs’ motivations, the industry may need to reevaluate its pricing strategies to maintain public trust and prevent further regulatory intervention.