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UK Telecoms Firms Sign Charter to End Surprise Bill Hikes

UK Telecoms Firms Sign Charter to End Surprise Bill Hikes

The UK’s largest telecommunications providers have committed to a new government-backed consumer charter designed to protect mobile and broadband customers from unexpected mid-contract price increases. The agreement was reached at a meeting hosted by Chancellor Rachel Reeves and Technology Secretary Liz Kendall with industry leaders this week, aiming to ensure fair treatment and clear communication for all consumers.

Under the new telecoms Consumer Charter, customers signing new contracts will be told the exact total cost for the entire duration of their deal. Providers have pledged to end unexpected price rises during a contract term. Any future changes to pricing must be communicated clearly and upfront, allowing consumers to understand the full financial commitment before they agree.

Focus on Social Tariffs and Support

The charter also sets out to improve the uptake of social tariffs, which are cheaper packages available to people receiving certain government benefits. Estimates suggest almost seventy percent of eligible broadband households are unaware these options exist. Ofcom has stated such tariffs could save qualifying homes up to £220 per year.

Providers have now committed to proactively promoting these discounted offers. They will also allow customers facing financial difficulty to switch to cheaper plans without penalty and will provide more manageable payment options.

Technology Secretary Liz Kendall stated that broadband and mobile users deserve to be treated fairly and should not face sudden jumps in their bills. She said the agreement would make a real difference to millions of consumers, particularly amid ongoing cost-of-living pressures.

Industry Reaction and Investment Context

The announcement coincides with the launch of a government Mobile Market Review, which will examine the sector’s long-term investment environment. This review is part of a joint ambition with the industry to deliver nationwide standalone 5G coverage to all populated areas by 2030.

Ministers argue that widespread, high-quality connectivity is essential for economic growth and innovation. The call for evidence in the review seeks to identify policy measures that could support sustained infrastructure investment, as operators continue to spend billions on network upgrades.

Executive Statements

Allison Kirkby, Chief Executive of BT Group, said her company had led the industry on price transparency and fairness. She emphasized that protecting customers depends on both pricing and resilient infrastructure, calling for bold government decisions to support continued investment.

Lutz Schüler, CEO of Virgin Media O2, welcomed the charter for strengthening predictability and transparency. He pointed to his company’s multi-billion-pound annual investment in fibre rollout and 4G and 5G network enhancements.

Devesh Raj, COO of Sky UK, described the charter as a step toward clearer customer information and said Sky would continue to promote social tariffs. Paddy Paddison, CEO of the Independent Networks Cooperative Association (INCA), said improving consumer confidence benefits the entire sector but stressed that commitments must remain practical and preserve conditions for investment.

Steve Leighton, Chair of the Internet Service Providers Association (ISPA), noted the charter builds on existing pro-consumer reforms. He highlighted that a stable regulatory framework is essential for maintaining lower prices and strong competition, adding that broadband providers have collectively invested over £50 billion toward the UK’s gigabit coverage target.

Next Steps and Government Aims

The government stated it will continue working with operators and trade bodies to ensure connectivity remains a national priority. The ultimate aim is to deliver better outcomes for consumers while sustaining the long-term network investment required for future digital infrastructure. The Mobile Market Review will gather evidence throughout the coming months to inform future policy.

Source: Mobilenewscwp.co.uk

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