Annual Price Increases

Annual price increases for phone and broadband services

Many large service providers now include a built-in price increase subsequent to a customer entering a new contract. Price increases can be calculated based on inflation metrics such as the Consumer Price Index, a fixed percentage, both CPI and a fixed percentage or a set monthly amount. These price increases usually takes place automatically in April each year.

We recommend checking your terms and conditions of your contract, or contacting your service provider, to ensure you are aware of any price increases that may be included in your contract.

If you are looking to switch or enter a new contract, be aware that some service providers have not implemented built-in contractual price increases, so you can shop around.

The best time to look for a cheaper deal is if you are:

• coming to the end of your minimum contract term.
• no longer within the minimum term of your contract.

If your contract includes a built-in price increase, you generally cannot switch or exit your contract without a penalty, unless you are outside your minimum term.

However, if your contract does not include a built-in price increase or if you are outside your minimum term, you can switch without penalty if your price increases.

If your contract does not include a built-in price increase, your service provider must notify you of any changes to your contract. They must do this by giving you at least one month’s notice of the change and must inform you, where applicable, about your right to terminate your contract without penalty.

A contract covers both the price plan and other terms and conditions.

Some tips:

• Check out which service providers have built-in price increases, and which do not.
• Contract price increases generally occur in April, so consider the time of year that you sign up to a contract with a built-in price increase.
• Consider a shorter minimum term contract, such as 12 months or a contract with no minimum term.
• Consider a SIM only plan – these often have lower subscription costs which may lessen the financial impact of any CPI related price increases.

This is an example of a 24-month contract with a CPI+ annual price increase included in the contract

A customer signs up to a service in March of year one of €62.17 per month which includes an annual price increase of CPI +3%. That year the CPI is announced as an increase of 8.2%. Therefore, the customer’s monthly bill will increase to €69.13, an increase of 11.2% from April, which is 8.2% plus 3%. The following year, the CPI is announced as an increase of 3.9%. Therefore, the customer’s monthly bill will increase to €74.38, an increase of 6.9% in April of year 2, which is 3.9% plus 3%. Over the course of a 24-month contract the customer would pay an extra €217.83.

We also have more information on switching and contracts to help .