The national telecommunications regulator has announced proposals to curb the 'loyalty penalty' paid by long-term broadband subscribers.
The country’s major internet service providers (ISPs) are preparing for unprecedented regulatory intervention following years of rising connection fees and disappointing rates of consumer switching.
A consumer champion group welcomed the regulator's stance, arguing that the market is "persistently failing" those who do not actively shop around. Average out-of-contract broadband prices have risen by 42% over the past five years, leaving approximately five million households, particularly elderly and low-income customers, paying premium rates for basic speeds.
However, some industry experts have warned that strict price caps could deter private investment in next-generation gigabit fibre networks, potentially harming consumers in the long run.
With reference to Extract C, explain two likely reasons why many broadband consumers have not switched to providers offering lower prices.
