Chancellor Rachel Reeves and Technology Secretary Liz Kendall have written to the major UK telecoms operators demanding action on consumer protection, particularly concerning unexpected mid-contract price increases.
The ministers invited chief executives from BT/EE, Virgin Media O2, Vodafone, Three, Sky, and TalkTalk to a Whitehall roundtable to discuss industry practices and customer communications.
Telecoms contract commitments under scrutiny
In their letter, Reeves and Kendall called on the sector to confirm that customers under contract will not face price rises beyond those they originally agreed to. The ministers have also requested that legacy customers be proactively migrated to fixed, transparent pricing models (without affecting the timing of planned increases). This move follows the Technology Secretary writing to Ofcom on the issue earlier this month.
"Customers should feel confident that they're getting a fair deal," said Reeves. "That's why we're calling on the industry to put fairness first – to be honest and upfront about what people will pay and keeping price rises in line with what customers signed up to."
Balancing consumer protection with infrastructure investment
It is hoped that the upcoming roundtable will address both consumer protection measures and how the government can support the sector's investment in UK digital infrastructure. This dual focus acknowledges the substantial capital expenditure required to meet the nation's connectivity ambitions.
Kendall reiterated the essential nature of telecoms services: "Mobile and broadband bills are an essential, everyday cost for millions of us across the country. But it is clear to me that companies need to do more to protect their consumers – loyal customers who rely on these services to run businesses and stay in touch with loved ones."
The government acknowledged that the issue requires collaboration, stating it wants to support industry infrastructure investment, crucial for continued full fibre and 5G network rollouts, while ensuring improved connectivity and access to digital services for the public.
Infrastructure ambitions must be funded
The intervention comes as the government pursues ambitious infrastructure targets under its 10 Year Infrastructure Strategy. These include achieving standalone 5G coverage across all populated areas by 2030 through commercial investment, and ensuring 99% of premises have access to gigabit-capable connections (primarily reliant on new optical fibre networks) by 2032.
The government highlighted existing industry efforts, including commitments made through the Digital Inclusion Action Plan and the provision of lower-cost social tariffs for vulnerable and digitally excluded consumers. Given the scale of the required fibre and mobile investment, the industry will be keen to understand what support will be offered alongside the increased regulatory scrutiny.
