March 16, 2023
In 2023 so far we have seen a huge increase in mobile and broadband prices, giving the UK yet another expense to deal with during this cost of living crisis.
Many major broadband suppliers are increasing their bills mid-contract. While this isn’t unusual, with providers usually hiking their prices up once a year to tie in with inflation and using the Customer Price Index (CPI), broadband bills usually see a 3-4% increase. However, with the CPI being at 10.8 in December 2022, and the inflation rate reaching 8.8% in January 2023, these hikes have been much higher. It is expected that broadband bills will rise at a historical 13-15%.
The rise in inflation of prices is also heavily affecting businesses, with data revealing that 43% of small businesses reported a drop in revenue in the last three months. A factor that comes alongside this is that small businesses’ confidence when it comes to running the business and its future have plunged to the lowest level since the second lockdown.
The rise of costs in many areas (broadband, fuel, energy bills) will certainly affect many UK businesses and see them facing challenges. Due to customer buying behaviours changing to cope with the cost of living, they may no longer be able to afford products/services which could massively affect the business’s cash flow, on top of dealing with rising bills.
To cope with this, many businesses will need to, or already have, cut down in other areas of business. Some may even have to make staff cuts due to them not being able to afford to keep up with employees’ pay.
The price rises are predicated by broadband providers’ reliance on existing Public Switched Telephone Networks (PSTNs), otherwise known as copper connections. These types of broadband connections are at breaking point and require frequent maintenance, resulting in higher costs. Not only that, but by relying on these types of connections, businesses can be prone to drops in connection and slower speeds.
A great start to managing your broadband expenses is to check if your price is increasing and if so, how much. If you can afford this and are happy with your current plan then the increase may not be of concern for your business. If it is a concern, be sure to check your current plan – do you actually need the amount of data or type of connection you’re currently paying for? If not, you can look into changing your package to a different type – the connection may not be as quick, but providing it meets the needs of your business, will allow you to reduce your outgoings. Be sure to speak to your provider if you want to switch to a different package.
Move away from the traditional broadband package. An alternative to traditional broadband is SoGEA fibre which allows businesses to benefit from a superior, strong, fast broadband connection without the cost of an associated telephone line. SoGEA technology is the future of broadband and a brilliant solution for businesses that don’t need traditional phone lines.
Check your contract – contract lengths vary and although providers must let you know when your contract is up, if you don’t respond before it has ended, the provider will renew the contract and switch you over to a standard tariff. Standard tariffs are more expensive and payments can be taken without caution. If you’re coming up to the end of your contract, be sure to look at the new prices and alternative options before renewing.
You can also switch broadband providers – there may be companies out there offering a good package at a lower price than you’re currently paying, allowing you to shop around for the best deals. If you are planning on switching providers, be sure to check your contract to see how long you have left as you may have to pay an exit fee.
As mentioned, mobile providers have also increased contract holders’ monthly costs. Although broadband is the area that businesses will struggle with the most, many businesses also use mobiles and smartphones within their company, so could also struggle with this bill increase. Our Big Switch Off business survey revealed that 86.2% of businesses would use mobile phones if they didn’t have a landline, which will be the case by 2025.
If you are concerned about the increasing price of broadband and mobile contracts, be sure to use the above tips and advice to find the best deal for you.
National Business Communications offer a range of options for businesses that are struggling with the recent industry price rises. We provide the future of business broadband with our Cloud Voice and SoGEA broadband, that in combination allow you to benefit from superfast fibre broadband and unlimited calls without the hassle of having a phone line installed and a large volume of phone equipment. We are proud to offer superfast fibre deals for competitive prices.
National Business Communications © 2023