Research reveals that over nine million broadband consumers unaware they are set for biggest in-contract price hike in years[i]

LONDON, Jan. 25, 2022 /PRNewswire/ -- Research today reveals that over nine million consumersⁱⁱ are unaware that their broadband bills are set to increase, according to research by Hyperoptic, the UK's hyperfast broadband provider. Every year BT, EE, Plusnet, Vodafone, O2, TalkTalk, Shell Energy, and others raise their 'in contract' prices in line with the Consumer Price Index (CPI) rate of inflation, which recently hit 5.4 per cent. They then add up to 3.9 per cent.ⁱⁱⁱ These companies represent over half (56 per cent^iv) of the UK broadband market.  

Over 15 million consumers^v are set to be impacted by these price rises, which come into effect from as early as 31 March 2022. With CPI at a thirty-year high, consumers will soon be hit with the following price hikes:

• BT will increase bills by 9.3 per cent - an average yearly increase of: £45.33^vi
• EE will increase bills by 9.3 per cent - an average yearly increase of: £38.39^vii
• Plusnet will increase bills by 9.3 per cent - an average yearly increase of: £24.92^viii
• TalkTalk will increase bills by 9.1 per cent - an average yearly increase of: £35.85^ix
• Vodafone will increase bills by 9.3 per cent - an average yearly increase of: £31.28^x

Hyperoptic commissioned a nationally representative survey via Censuswide^xi of 2,000+ consumers, who will be impacted by these in-contract price rises, to get insight into consumer sentiment. Findings include:

• 60 per cent of affected customers did not know about the upcoming price rises, which equates to over nine million consumers^xii
• Nearly half (47 per cent) feel misled by their broadband provider
• 63 per cent of affected customers feel these price rises are unfair
• 59 per cent would have tried to negotiate a better deal from their provider if they had been aware
• Nearly half (48 per cent) would not have signed their contract if they had been aware
• 57 per cent of affected customers will look for a provider that doesn't impose in-contract price rises when they swap provider

Charles Davies, MD ISP, Hyperoptic:

"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. Most costs in fixed broadband come from building the network. Once built, the cost of maintaining the infrastructure is much lower. That means our industry can mitigate the impact of inflation, much more so than other industries. It is then disappointing to see so many operators choosing to raise prices at this time.

"Here at Hyperoptic, we are proud to put customers first. We pioneered rolling-contract packages, offered free connectivity for a number of families in council housing during the 2021 lock-down and have launched great value tariffs for people who are financially vulnerable.  Crucially, we believe in treating our customers fairly, which is why we won't be increasing our prices this year and why we have never increased our in-contract prices since our inception over ten years ago."

In January 2022 Virgin Media also announced that it would be increasing its broadband prices, reportedly by an average of £4.70 a month. That equates to an annual increase of £56.40.  Unlike the above-mentioned broadband companies, Virgin Media has confirmed that all customers affected by the price increase can leave their contract without paying any early termination charge. To do this, customers will need to contact Virgin Media within 30 days of receiving notification of the price increase. 

Sky has yet to confirm whether it will be raising its in-contract prices, but its website states "prices may change during your contract." In 2021, its customers were impacted by price rises of up to £72 per year.

Collectively, UK broadband companies are set for a windfall of more than £830^xiii million.

For further information please contact: press@hyperoptic.com

About Hyperoptic

Hyperoptic was founded ten years ago to shake up the UK broadband market with its "full fibre" fibre-optic technology. We offer consumers and businesses gigabit-capable broadband with a top average (median) speed of 900Mbps, which is over 17x faster than the UK average (median) speed^xiv.

We work with property owners, developers and other partners, designing and installing dedicated fibre infrastructure to new buildings and existing developments. We focus exclusively on high density urban areas.

The company has been awarded the 'Best Superfast Broadband' provider by the Internet Service Providers' Association for six years running.  It has also been listed in the Sunday Times Sage Tech Track 100 for four years in a row. In the last year it's been recognised as the 'Fastest Ultrafast Provider (downloading)' and 'Fastest Ultrafast Provider (uploading)' by the Broadband Genie awards and won both 'The Service Award' and 'The Innovation Award' at the inaugural Compare the Market Simples Awards.

For more information, please see: https://hyperoptic.com/ 

ⁱ Hyperoptic commissioned Censuswide to survey 2,000 consumers that would be impacted by price rises and 60% were unaware they were happening. With 15 million consumers due to be impacted, it equated nine million were unaware

ⁱⁱ Hyperoptic commissioned Censuswide to survey 2,000 consumers that would be impacted by price rises and 60% were unaware they were happening. With 15 million consumers due to be impacted, it equated nine million were unaware

ⁱⁱⁱ Links to websites confirming price rises linked in news release

^iv Figures calculated using subscriber figures listed on Choose and ISP Review:

https://www.choose.co.uk/guide/home-broadband-market-overview.html, https://www.ispreview.co.uk/review/top10.php

^v Figures calculated using subscriber figures listed on Choose and ISP Review: https://www.choose.co.uk/guide/home-broadband-market-overview.html, https://www.ispreview.co.uk/review/top10.php

^vi Calculated via average price increases, multiplied by customer base and based on market share data taken from https://www.choose.co.uk/guide/home-broadband-market-overview.html

^vii Calculated via average price increases, multiplied by customer base and based on market share data taken from https://www.choose.co.uk/guide/home-broadband-market-overview.html

^viii Calculated via average price increases, multiplied by customer base and based on market share data taken from https://www.choose.co.uk/guide/home-broadband-market-overview.html

^ix Calculated via average price increases, multiplied by customer base and based on market share data taken from https://www.choose.co.uk/guide/home-broadband-market-overview.html

^x Calculated via average price increases, multiplied by customer base and based on market share data taken from https://www.choose.co.uk/guide/home-broadband-market-overview.html

^xi An independent, international market research consultancy

^xii Hyperoptic commissioned Censuswide to survey 2,000 consumers that would be impacted by price rises and 60% were unaware they were happening. With 15 million consumers due to be impacted, it equated nine million were unaware

^xiii Calculated via average price increases, multiplied by customer base

^xiv Based on the UK average (median) broadband download speed of 50.4Mbps, taken from Ofcom's "UK Home Broadband Performance" report (09.09.2021). Based on pricing for packages as set out on each providers website as at 20/01/2022