Line rental prices could affect customers, says Ofcom

The rising cost of broadband line rental prices could have a negative effect on customers, Ofcom has said.

 

The rising cost of broadband line rental prices could have a negative effect on customers, Ofcom has said.

The consumer watchdog has published a report saying that vulnerable broadband customers could be hit hard by proposed rises in line rental fees.

The Consumer Experience Report named line rental prices as one of the key areas Ofcom should investigate, with rising prices and confusing advertising being the important factors.

Figures show that the average line rental cost has risen from £15.70 per month in 2013 to £17.77 per month as of last year.

2015 also saw every major UK provider increase their line rental prices, with Sky found to have the highest increase over 5 years with 44.1%.

One of the main reasons for the increase in rental prices, according to Ofcom, is the massive downturn in the amount of landline calls, with the figure falling 37% in the last 7 years.

Ofcom has also claimed that confusing pricing is also an issue in the broadband sector.

This includes promotional discounts which claim that broadband is free for the first year, whilst still charging expensive line rental.

This, Ofcom claims, could be harmful for “less engaged” customers who aren’t completely sure what they’re buying.

This issue was raised by the organisation recently, with the Advertising Standards Agency also conducted their own research.

Ofcom said it would begin steps to in order to monitor line rental price increases.

Source: Cable

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