A rising bill that catches you out

You open your business account in March and notice the monthly line for Daisy Communications has jumped by more than a few pence. The increase feels sudden, but it is rarely a surprise to the industry. Mid-contract price rises have been part of the telecom landscape for years, and they tend to follow a formula that ties the uplift to inflation. For many small and medium enterprises the first reaction is to wonder whether the rise is justified, or whether there is a way to avoid it altogether.

How price rises have traditionally been calculated

Most UK business telecom contracts signed before 2025 contain a clause that links any mid-term adjustment to the Retail Price Index or Consumer Price Index plus a fixed margin. The typical wording reads something like "the provider may increase the price by RPI or CPI plus 3.9 per cent". In practice this means that if the RPI for a given year is 6 per cent, the provider could add roughly 9.9 per cent to the monthly charge. The clause is triggered automatically, and the provider is only required to give a short written notice, often 30 days, before the new rate takes effect.

The rationale behind the clause is to protect the provider from the cost pressures that affect the whole supply chain, from network upgrades to wholesale fees. For the customer it creates a predictable, if modest, upward drift in spend. The downside is that the increase can feel abrupt when it lands on the invoice, especially if the business has not budgeted for it.

What changed in January 2025

From the start of 2025 Ofcom introduced a ban on new inflation-linked mid-contract price rises. The regulator now requires all new business contracts to state any future price change in clear pounds-and-pence figures at the point of sale. This means a provider must tell you exactly how much a price will rise, rather than referring to an index that can change each year.

The rule does not apply retroactively. Contracts that were signed before the cut-off date may still carry the old RPI/CPI plus margin clause. Those are referred to as legacy contracts. If you are on a legacy Daisy Communications agreement, the old clause could still be in force, and the provider can apply a percentage uplift in line with the original terms.

How to check whether your contract has a rise clause

The first step is to locate the original agreement you signed with Daisy Communications. It may be stored in your email archives, on a cloud drive, or in a physical folder. Look for any section titled "Price Review", "Adjustment", "Inflation" or similar. The wording will usually mention an index such as RPI or CPI and a percentage figure. If you see a phrase like "the price may be increased by the greater of RPI or CPI plus X per cent", you are dealing with a legacy clause.

If the contract instead lists a fixed amount that the price will rise to after a certain date, then the Ofcom rule applies and you should see a clear figure such as "£12.50 per line from 1 April 2025". In that case the provider cannot apply an additional percentage increase without your agreement.

When in doubt, contact the provider's customer service team and ask them to confirm the exact wording of the price-review clause. Keep a record of the response, as it will be useful if you need to discuss the increase at renewal.

What to do at renewal

Renewal is the natural moment to reassess whether the current contract still offers the best value. Here are a few steps that we recommend:

1. Review the notice period in your contract. Most agreements require a 30-day notice if you wish to terminate or renegotiate. Mark the deadline on your calendar so you are not caught out by an automatic roll-over.

2. Compare the current offer with the market. The UK business mobile market is highly competitive, with EE, Vodafone, O2 and Three all providing robust 5G coverage and a range of inclusive international minutes. Use a comparison tool such as Compare The Networks to see how other providers price similar bundles.

3. Consider switching the network or the bundle structure. Some providers bundle lines with data, voice and international calls in a way that can hide extra charges. By untangling the components you may find a leaner solution that matches your actual usage.

4. Negotiate a fixed-price extension. If you prefer the certainty of a set price for the next 12 or 24 months, ask the provider to lock in a pound-and-pence figure rather than an inflation-linked clause. This is now a standard request after the Ofcom change.

5. Ask about loyalty discounts or volume incentives. Many providers will offer a better rate if you increase the number of lines or commit to a longer term. The key is to have the numbers in front of you when you speak to the sales team.

If you decide to stay with Daisy Communications, request a written confirmation of the new price and the exact date it will take effect. Having this in writing protects you from any unexpected adjustments later in the year.

Comparing the main options on the market

Below is a quick comparison of the leading business mobile providers, focusing on the elements that matter most when you are evaluating a renewal or a switch.

The table shows that while all four networks now have extensive 5G coverage, the way they handle contract renewals differs. Providers that signed contracts after January 2025 are more likely to give you a clear price figure, which makes budgeting easier. Legacy agreements, which many businesses still hold, can still trigger percentage-based hikes.

Practical steps before you speak to a sales rep

• Pull the latest invoice and note the exact amount of any increase.
• Locate the clause in your contract that talks about price reviews.
• Write down the date you need to give notice if you want to change providers.
• Use our free comparison tool to generate a side-by-side view of the top four networks.
• Prepare a short list of questions about fixed-price extensions and international call allowances.

Having these items at hand will give you confidence and help you avoid being pressured into a deal that does not suit your business.

Why businesses often switch in 2026

The combination of legacy clauses still being active, the rise in wholesale costs for network capacity, and the new regulatory environment means many businesses are revisiting their telecom spend. Common reasons for switching include:

• A desire for price certainty after the inflation-linked clause has been triggered.
• The need for a larger data allowance as remote working continues.
• Seeking a provider that offers a more transparent bundle without hidden fees.
• Wanting to consolidate multiple services, mobile, broadband and fixed line, with a single supplier for easier management.

If any of these points resonate with you, it may be time to explore alternatives. Our team can help you map your current usage against the latest offers from the major networks, ensuring you only pay for what you need.

Take control of your telecom costs today

The best way to protect your business from unexpected price rises is to stay informed and act before the renewal date. Check your contract, compare the market and consider a fixed-price extension if you value certainty. If you need a second opinion, we are happy to run a free, no-obligation analysis of your current spend and show you where you could save.

Get a free quote now and see how the major networks stack up against your existing Daisy Communications agreement. You can also explore our detailed guide on understanding inflation-linked price rises or read about how to avoid hidden bundle charges. For a broader view of business mobile options, visit our compare business mobile deals page.