The market is failing – internet access must be affordable for everyone

Cropped image of a person writing on a notebook near computer by Scopio from Noun Project

In the last few weeks of 2023, there were a few announcements which could have major implications for the delivery of affordable broadband services. 

On the positive side, we have Ofcom’s welcome proposal to ban inflation-linked mid-contract price rises. However, on a much more frustrating note, we’ve seen yet another delay to the One Touch Switch service, which would allow people to easily switch between providers and improve market competition. 

Starting with the positives: the proposed ban on inflation-linked price rises is a very welcome move. As Ofcom reported, many customers faced significant, above-inflation price rises in the past year. Though broadband bills are lower in comparison to other household bills, these additional pressures were particularly unwelcome during a cost-of-living crisis. 

The proposed ban is already having an impact. Last week, we saw confirmation from BT that they would abandon the practice of linking price-rises to inflation – although only from this summer, after another period of high inflation. It may well be the case that all major providers will have committed to end the practice before the ban is formally introduced.

However, this ban doesn’t go far enough. Whilst banning inflation-linked price rises will help, and the clarity about future pricing should improve protections for consumers, we believe that Ofcom should go a step further and ban all mid-term price rises – regardless of whether they are linked to inflation. People should have certainty that the price they sign up to is the price that they’ll continue to pay throughout their contract. 

Meanwhile, the latest delay to the One Touch Switch service is sadly unsurprising. The service, which has been in the works for many years, would provide households with the ability to quickly switch providers. One of the key benefits of the service is that it would allow bill payers to switch without speaking to their existing provider. We’ve seen similar successful reforms in the mobile market, which have allowed people to change networks with relative ease. 

Though we are not privy to the exact reasons behind the delays, it is clear that the industry – particularly the well-established, large players – need to step up and deliver the service properly to ensure an effective, competitive market. Refusing to do so will only lead to more delays and higher prices for consumers.

In the face of these criticisms, the classic response from companies will be to point to their existing ‘affordable’ products, such as social tariffs. Yet how do they promote these to their existing customers? And what are they doing to ensure all can access these, particularly those who are ineligible for Universal Credit, or have no recourse to public funds? 

Whilst there are some notably exceptions – with Virgin Media O2 committing to mailing all of their customers about their social tariff products, and Community Fibre offering an affordable broadband service with no eligibility requirements – these are sadly few and far between. 

We need to see much stronger commitments from industry towards delivering affordable internet access, with lower barriers to entry for consumers. And we need to see stronger regulation in the market to allow smaller broadband providers to compete at affordable price points, as many are currently beholden to Openreach’s pricing. 

We believe that internet access is an essential utility, and it should be delivered and regulated as such. Given its importance in day-to-day life, internet access must be available at an affordable rate for everyone.