Potentially good news for customers

[RedDragon]

New rules coming in from next year mean that although there can still be mid-contract price rises you'll not before taking out the contract what they will be so you'll be able to take the decision whether to go ahead. Great to know, in pounds and pence, what the rise will be rather than being faced with some previously unknown percentage increase

https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/ofcom-bans-mid-contract-price-rises-...

[RedDragon]

know, not not

[TimmyBGood]

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@RedDragon wrote:

 Great to know, in pounds and pence, what the rise will be rather than being faced with some previously unknown percentage increase

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As I've observed elsewhere, EE is currently advertising £29.99 broadband on a 24 month contract, with £3 increase each April.

That's 10% followed by 9%, when inflation is predicted to be around 2% at the end of this year (so 5.9% increase using the historic BT/EE method of CPI plus 3.9%)

I'm not sure that's 'good news'

[RedDragon]

@TimmyBGood I hear what you're saying but at least you know from the beginning that the increase will be £3 and that gives you the opportunity not to sign-up. It's the not knowing what the percentage increase will be that imo causes problems

[TimmyBGood]

@RedDragon 

It's also almost twice the increase which would otherwise have been applied: Ofcom could at least acknowledge unexpected consequences.

[RedDragon]

No point arguing about it. As I said I think it's great for customers, others may have a different opinion

[TimmyBGood]

@RedDragon 

I'd say it's great for customer certainty, but always likely to be worse for pricing because ISPs will want to play safe and apply what's actually a high percentage increase even in low inflation years.