TalkTalk takes swipe at competitors over pricing fairness

TalkTalk has launched its Fairer Broadband Charter calling into question whether competitors know the definition of simple concepts such as honesty and fairness.

According to research from TalkTalk, 87% of customers feel it is unfair providers raise prices mid-way through contracts, with 54% of consumers supporting a complete ban on these price hikes. While these might seem like obvious statements to make, they do fit quite comfortably upon the beautifully groomed high-horse TalkTalk CEO Tristia Harrison is trotting along currently.

“Telecoms companies have been ripping-off consumers for far too long,” said Harrison. “The industry has to change to rebuild trust with consumers. We led the way two years ago and became the first provider to guarantee no mid-contract price rises. It’s proved hugely popular and today we’re going even further. Our Fairer Broadband Charter sets out three simple ways we’ll put customers first. I’m challenging our rivals to follow our lead so that the whole industry can rebuild trust with customers.”

While any research conducted or commissioned by a telco should be taken with a plate full of salt, TalkTalk does have a point and the Fairer Broadband Charter should create a position where customers do feel valued. What is quite interesting is a challenger brand actually offering something of value to a customer, instead of initiating a race to the bottom. While lower prices are often appreciated by customers, margins are realised elsewhere perhaps explaining poor performance and woeful customer service. It could be seen as somewhat of a hollow victory.

The Fairer Broadband Charter is essentially a challenge to the industry, with TalkTalk hoping to set the pace with other telcos following suit. Perhaps marketing campaigns down the road will be built on the ‘look what we made everyone else do’ or ‘they all needed to copy us’ messages. It isn’t necessarily the worst idea we have ever come across for a challenger brand.

Looking at the three pillars, the first is a continued commitment to maintaining the agreed upon prices throughout the contract. Sounds simple, but all major ISPs have introduced a mid-contract price hike to some degree over the last 18 months according to TalkTalk. Secondly, a connection guarantee will be introduced, allowing new customers to ditch the contract in the first 30 days if they are not happy. This is not necessarily a new one, as Vodafone introduced such an idea recently. Finally, the TalkTalk team will contact customers before their contract ends to ensure they do not get automatically put onto a higher priced plan upon automatic renewal.

These are of course all nice ideas, but it shows the woeful state of affairs in the telco industry if this new Charter is deemed going above and beyond. In most other industries, this would be considered the status quo or bare minimum requirements. For too long customer satisfaction has been an afterthought, instead focusing on enticing new customers with embarrassingly-poor Kevin Bacon adverts which make the brand seem dated, desperate and as creative as a dull shade of worn leather.

The tide is beginning to turn but the traditional telcos, in both mobile and broadband, are having their hands forced by challenger brands.