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32% of mobile customers feel that their mobile provider is ‘taking them for granted’ due to mid-contract price hikes, according to a survey commissioned by Lyca Mobile.
January 3, 2024
When customers of one of the ‘big four’ operators were asked if their mobile bill was rising in 2024, 40% didn’t know, but 36% said their bills were hiked in 2023. This led to the disgruntled feelings in 32% of the respondents.
The main gripe is apparently that mid-contract price hikes feel ‘opportunistic’ with others saying they think there are now better contracts available, or that it has meant they no longer feel they’re getting a good deal.
70% meanwhile said they would like greater transparency from operators on the way in which price rises are calculated, and 57% are considering switching providers due to having to shell out more per month.
“As household bills continue to sky-rocket, it is no surprise that many Brits’ new year's resolutions are focused on tightening budgets,” said Richard Schäfer, Lyca Group CEO. “Rising mobile phone contracts are an added expense many simply cannot afford. Brits are voting with their feet and considering abandoning their current provider in search of better deals.
“We already know that the majority of mobile contract customers are dissatisfied with the value they’re getting from their providers. In this day and age there is no reason why a high quality, reliable mobile service needs to cost the earth. UK mobile users deserve a fairer deal, especially in the face of rising bills.”
The research was conducted by Censuswide, and surveyed 2,001 people ‘nationally representative of UK adults’.
Obviously there’s some vested interest in Lyca pointing aghast at all this while simultaneously mentioning that it has ‘committed to no mid-contract price rises until at least 2026’ – but Ofcom has its eye on the issue as well.
Last month the UK comms regulator put out a proposal to curb inflation-linked mid-contract price rises by making broadband and mobile firms spell out upcoming price rises written into contracts in pounds and pence, rather than an 'inflation plus X%' model.The thrust of its concern is not so much related to the actual cost of having a mobile or broadband contract, but that “most people are left confused by the sheer complexity and unpredictability of inflation-linked price rise terms written into their contract, which undermines customers’ ability to shop around,” it said.
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