Commenting on Tesco’s commitment to fixed prices in mobile phone contracts,Ernest Doku, telecoms expert at uSwitch.com, says: “This is more welcome news for consumers who have often been left feeling misled and out of pocket after signing up to a fixed-term contract only to discover the hard way that prices aren’t fixed.

“Following EE’s announcement that from April its customers will have the option to fix the price of their monthly bills for a small premium, this move from Tesco arguably goes one step further – by ensuring that customers automatically benefit from no price rises, rather than by opting in and paying a premium. By ensuring that all plans have a fixed price for their duration, it brings some much-needed clarity and reassurance.

“Tesco have now become the second mobile provider to bring in changes ahead of Ofcom’s consultation on fixed prices for the length of contract – and it’s great to see networks taking the initiative and acting off their own back.

“However, while clarity and transparency are vital, it’s important that customers aren’t made to pay for them through higher handset costs or more expensive tariffs. Tesco has to maintain the value it currently offers, and not pass on any potential price increases to customers at the start of the contract. Customers also have to be protected from facing a hefty increase in their monthly bill if they want to stick with their plan when their contract ends.

“But this promise is a big step in the right direction for better consumer protection and is especially welcome in a time of rising bills and tighter household budgets. We hope that other mobile providers follow suit, and that all mobile phone customers benefit from greater clarity and protection against unexpected price rises.”

Published on 25th September 2013