London, February 13, 2023 – Hyperoptic, a prominent player in the UK’s broadband market, has escalated its crusade against mid-contract broadband price increases by launching a new TV advertisement today. The ad is strategically tailored to air via addressable TV, meticulously segmented by geography to effectively target Hyperoptic’s network footprint encompassing 64 locations across the UK. This is further bolstered by a comprehensive suite of digital assets and Out of Home advertising.
In collaboration with full-service agency CHS, the fresh advertising campaign highlights the plight faced by around 15 million households this spring: discovering an unwelcome hike in their broadband costs while being locked in a contract. All of this occurring amidst a concerning cost-of-living crisis.
The TV ad showcases a character expressing disbelief at the possibility of such a price hike mid-contract, only to be confronted by the reality hidden in the fine print – a scenario familiar to many broadband subscribers.
Recent developments saw Ofcom commencing an investigation into the prevalent practice of mid-contract price escalations within the broadband industry. Come April, broadband prices are slated to surge by up to 14.4% for customers of BT, EE, Plusnet, TalkTalk, and Vodafone, with no recourse to exit the contract without incurring substantial penalties. Similarly, Virgin Media patrons are anticipating a 13.8% spike, yet they will have a 30-day window to opt-out once notified.
Hyperoptic’s Chief Customer Officer, Lutfu Kitapci, voiced their stance, stating, “For a year now, we’ve been advocating for change and raising awareness regarding the mid-contract price hikes in broadband. The TV ad aims to enlighten more individuals about these looming increases and urges them to remain vigilant before committing to new contracts.”
Emphasizing their distinct approach, Kitapci added, “Hyperoptic has always refrained from imposing mid-contract price hikes. We consider it misleading to entice customers into a contract at a certain price, only to hike it without any transparency, especially during this ongoing cost-of-living crisis.”
Research conducted by Hyperoptic indicates that a substantial percentage of individuals are oblivious to upcoming changes in their broadband contract charges. The survey revealed that 60% of users are unaware of the forthcoming alterations in their monthly broadband charges, and 80% are unfamiliar with the Consumer Price Index (CPI) in relation to price changes. Additionally, less than a quarter could decipher the actual financial impact of a price hike when presented with the figures.
This alarming trend involves broadband providers increasing charges in the midst of contracts by the rate of inflation plus an additional 3.9%. With the Consumer Price Index rate of inflation standing at 10.5% in April, this could translate to an exorbitant 14.4% hike in bills. In monetary terms, broadband customers are collectively set to contribute an estimated £1.7 billion to the revenue of the UK’s major broadband providers due to these impending price escalations amid the ongoing cost-of-living crisis.
Hyperoptic, boasting a substantial customer base of over 250,000 and a network covering more than one million homes, has firmly established itself as a leader in the full fibre broadband market. Back in 2019, this status was further solidified when leading global investment firm KKR acquired a majority stake in the company.
With ambitious plans to reach 500,000 customers and two million homes in the near future, Hyperoptic remains dedicated to maintaining market-leading penetration and providing an exemplary customer experience while scaling its operations.
