TELECOMS customers are being warned to act and beat £52 a year price hikes with a simple money-saving move.
This is because telecom providers usually raise the prices of their contracts in the Spring.
GettyWe’ve explained what action you can take to soften the blow[/caption]
It comes as 11million broadband and 36million mobile customers will experience an inflation-linked price rise in April.
The average telecom customer will see their broadband prices rise by £27.19 a year and mobile bills by £24.23 a year.
But the exact amount your bills will rise will depend on your supplier and current contracted bill amount.
However, around 4.2 million consumers are out of contract on their broadband, and are therefore free to switch providers now if they wish to escape potential upcoming price increases.
Millions more mobile customers can make the same move by switching contracts, too.
Ofcom estimates suggest 34% of households with a pay monthly deal are not in contract.
But, if you’re unsure whether you’re in or out of contract on your mobile, you can text the code ‘INFO’ to 85075.
It’s free, and it’s the easiest and least time-consuming way to find out if your contract is up for renewal.
You’ll just receive a text message confirming if you have to pay exit fees to leave your provider.
If you don’t – consider yourself out of contract.
Ernest Doku, telecoms expert at Uswitch.com, said: “Unfortunately, there are now fewer providers allowing consumers to make a clean exit from their existing contract without penalty fees, should prices go up.
“If you’re out of contract – now is the time to take action before the April rises kick in.
“If you don’t know when your contract ends – this is a good moment to find out. This is especially true if you haven’t moved in the past 18 or 24 months, as you’re very likely to be at or near the end of your contract, and significantly cheaper options will be out there.”
Providers usually increase their prices annually based on the rate of inflation plus up to 3.9% more.
December’s CPI figure (4%) or January’s RPI figure (4.9%) are used by many mobile and broadband companies to hike prices.
The increases will come into effect for millions of customers on March 31 on April 1.
This means the new rate will kick in from your next bill after that date.
The increase will affect customers even if they’re signed up to a contract with a fixed price.
This is because many firms have mid-contract price rises written into their terms and conditions.
Remember, the exact amount more you’ll have to pay will depend on how much your bill is now.
BT, EE and Plusnet will all hike customer charges on March 31.
The remaining telecom giants will raise charges or April 1.
We’ve previously revealed how much prices will rise under 11 different providers in the Spring.
How can I cut my telecom costs?
The simplest way to save more of your hard-earned cash is by switching your supplier when your contract expires.
If you’re outside the minimum term of your contract, then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
You might be charged an exit fee if you’re still in your contract period.
But don’t just switch contracts because the price is lower than you currently pay.
Look at how much speed you need for broadband, how many minutes and texts you need, and how much data you’re using on your mobile to find out which deal is best for you.
Use comparison websites like MoneySupermarket and Uswitch to compare the best tariffs and phone prices.
Use text-to-switch
TEXT-to-switch makes it quicker and easier to leave your mobile company by giving you control over how much contact you have with your existing provider.
Text ‘PAC’ to 65075 – and keep your mobile number
Text ‘PAC’ to 65075 to start the process
The existing provider will text back within a minute and send the PAC number which will be valid for 30 days
The provider’s reply must also include information about any early termination charges or pay-as-you-go balances
The customer then gives the PAC number to their new provider
The new provider must arrange for the switch to complete within one working day
Text ‘STAC’ to 75075 – and get a new mobile number
Most people want to keep their number when they switch but one in six do not
Text ‘STAC’ to 75075 to get a service termination authorisation code
The rest of the process is the same as above
If you’re happy with your provider, then it might be worth using your research to haggle a better deal, too.
The first thing to do is find out what the cheapest deal on the market is.
You can use this rate as a bargaining tool to get a better offer from your provider.
Get in contact with your provider to see if they can match this rate – if not, you might want to switch instead.