Mobile and broadband companies ‘must be open about better renewal deals’

Loyal mobile and broadband customers are paying over the odds because providers aren’t upfront about their best renewal deals.

According to Citizens Advice, providers aren’t automatically offering existing customers their most competitive prices when they’re trying to renew.

This, it said, means many are paying far more than they have to for mobile and broadband services.

Save money by negotiating

When you get to the end of your fixed-term contract, you can either:

• accept the price your current provider offers
• switch to a new provider
• negotiate for a better deal

Figures from Citizens Advice show that on average, people call and negotiate for a discount can save more than £325 a year on their mobile and broadband bills.

Negotiation process can be difficult for customers

Almost one in five people (18%) don’t negotiate or switch at all, so they end up paying a higher amount for mobile and broadband services.

But that’s partly because doing nothing can seem like the easiest option.

Switching to a new provider can take time and involve setting up new equipment.

And of the people who negotiate on the phone, nearly eight in ten (78%) find at least one of the steps difficult, such as navigating confusing call menus and waiting on hold.

Meanwhile, many said they came off the phone feeling stressed or like they’d wasted their time.

Pricing must be transparent

Citizens Advice has urged Ofcom to take action to ensure households are offered the best deals every time.

“We want to see Ofcom clamp down on long overdue transparency on pricing, closing the gap between what deals are on the table and what’s kept under the counter,” said chief executive Dame Clare Moriarty.

She added that while the watchdog has taken some “welcome steps” to strengthen protections for consumers, “this loophole needs to be closed”.