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Broadband providers need to stop increasing prices mid-way through consumer contracts, it has been claimed.

Speaking to ISPreview.co.uk, Charter UK's Chief Executive Officer Paul Clark welcomed Ofcom plans to regulate in this area.

He noted that the telecoms sector is not as tightly regulated as many other industries.

"In financial services, for example, the Financial Services Authority expects businesses to demonstrate fairness to its customers through its Treating Customers Fairly initiative," Mr Clark stated.

"Even though the industry clearly has its own scandals to deal with, it is taking steps to address its problems."

He said the telecoms and broadband sector should "take note" and consider what lessons can be learnt from this positive approach.

Last month, Stavros Tsolakis, Chief Executive Officer at Direct Save Telecom, explained that customers have a statutory right to cancel their contract if their broadband provider puts its prices up mid-contract.

However, he noted that few consumers are aware of this fact - and service providers are not always overly forthcoming with this information.

Mr Tsolakis claimed broadband providers should make the facts clear to their subscribers, enabling them to switch to a rival firm if they so choose.

"At the very least, many providers are underplaying the contract release clause, resulting in consumers missing out on the opportunity to reduce an important household bill," Mr Tsolakis stated.

"In some of the letters which have been sent out, the text informing the customer about the get out clause has been so small that you need a magnifying glass to read it."

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