Mobile and broadband customers face murky contract practices costing millions

Mobile and broadband companies are under scrutiny for engaging in questionable practices that make it challenging for consumers to secure better deals, potentially saving them up to £325 a year. This revelation comes from a recent report by Citizens Advice, which finds that three-quarters of those attempting to negotiate contract renewals encounter obstacles such as lengthy waiting times and confusing call menus.

Citizens Advice estimates that up to three million customers across the UK are effectively paying more than necessary when their contracts are renewed. The organisation is urging providers to automatically offer existing customers their most competitive prices, instead of hiding attractive deals behind complex processes.

Average savings for those who persist and negotiate by phone exceed £325 annually on combined mobile and broadband bills. Despite this significant potential for saving, loyalty comes at a price, as customers who do not negotiate or switch lose out on £28 million in savings every month. Research shows that almost one in five consumers refrain from negotiating or switching altogether.

The majority of those who attempt to save money face at least one significant hurdle during the negotiation process. Over half report being put on hold for extended periods, while 43 percent must wrestle with intricate and confusing call menus before reaching the right department. This process discourages many from pursuing better deals.

The regulatory body Ofcom has attempted to address some concerns with its ‘One Touch Switch’ scheme, which simplifies the process of changing providers. Over its first year, 1.6 million people benefited from the scheme, and more than 300 providers have now signed up. Ofcom has also taken measures against unjustified mid-contract bill rises, which were brought to light in a 2023 investigation revealing increases of up to 17.3 percent.

Despite these efforts, Citizens Advice is pressing for greater transparency within the sector. Chief executive Clare Moriarty has called for a clampdown on opaque pricing, advocating for all deals to be made visible rather than hidden. The emphasis is on closing loopholes that allow companies to withhold their best prices from loyal customers, ensuring a fairer deal for all.

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