Flow Barbados has been asked to justify planned broadband and bundle price rises of up to $10, as the Fair Trading Commission (FTC) examines the contractual basis for the increases, how customers were notified, and who will be affected.
The FTC said on Thursday that it had noted the company’s announcement and was reviewing the proposed increases in monthly rates for certain broadband and bundled services.
In response, the island’s consumer advocacy group chided the FTC for suggesting consumers can vote with their feet, saying freedom of choice is of little value when consumers lack viable alternatives or face unreasonable costs for exercising that choice.
Although it regulates rates for certain services under the Utilities Regulation Act, the commission said its authority did not extend to mobile or broadband rates. It could, however, examine the increases under the Consumer Protection Act, including whether the relevant business practices complied with the act’s requirements.
The FTC said: “The commission is, therefore, reviewing these aspects of the proposed changes and has requested further information from FLOW, including the contractual provisions being relied upon to implement the increase, the timing and manner in which consumers have been or will be notified, and details on the consumers who are likely to be affected.
“The commission is, therefore, examining when consumers were first notified, the methods used to communicate the change and the effective date of the proposed increase.”
Fair Trading Commission (File photo)
The regulator said the information requested covered the categories or groups of consumers affected, including the services and packages to which the increases would apply.
“This will allow for better understanding of the extent of the impact across Flow’s customer base and whether different groups of consumers may be affected differently. The commission has also requested details regarding any additional services, features or other value that consumers will receive in connection with the increased price.”
About two weeks ago, Flow said it was moving ahead with a decision to increase prices for selected broadband and bundle customers from November.
Flow said: “A segment of customers has been granted a three-month deferral, meaning they will continue to enjoy their existing monthly rates from November 1, 2026, through January 31, 2027, with the applicable adjustment taking effect thereafter.
“Customers impacted by the adjustment have been notified directly and provided with details specific to their plan, including the revised rate and effective date.”
Flow (File photo)
Some customers complained on social media of sudden price rises, reporting bills increasing from $130 to $165; $95 to $140; $410 to $589.32; and $265 to $435.
Late on Thursday, the Barbados Consumer Empowerment Network (BCEN) said it rejected the $10 increase, arguing that consumers do not want it now or next year.
BCEN Executive Chairman Maureen Holder said the FTC should instead find out whether the customers who received the higher bills have seen “material changes to their existing agreements” and be allowed to terminate their contracts “without unreasonable financial penalties”.
“BCEN believes that consumer choice must be real and not merely theoretical,” Holder said, adding that the consumer association was “particularly concerned” by the FTC’s advice that consumers should review their packages and determine for themselves the telecommunications services best suited to their circumstances.
She insisted that it was insufficient to suggest that dissatisfied consumers can “simply” select another provider without examining the practical realities of competition and consumer mobility within the telecommunications market.
Holder added: “While consumers should certainly make informed decisions, this advice presupposes that meaningful alternatives are readily available. In practice, consumers may face contractual restrictions, cancellation charges, installation costs, service availability limitations and other barriers that make switching providers difficult or costly.”
“The important question is what are consumers receiving for the additional charges. BCEN supports the FTC’s request for information concerning any additional services, features or benefits that Flow intends to provide in connection with the increased charges. Consumers are entitled to seek a clear explanation of why they are being required to pay more, particularly where no corresponding improvement in service quality, speed, reliability or customer support has been identified.”
Veteran utility rate advocate Ricky Went told Barbados TODAY that he had contacted the FTC to question the justification for, and magnitude of, the rate increase.
Went said he requested that ”steps be taken to avoid future issues”.
Flow has said it recognises the importance of affordability for Barbadian households and businesses and remains mindful of the financial pressures customers face but added: “At the same time, continued investment in our network, technology, products and services is essential to delivering the reliable, high-quality connectivity our customers expect.”
Around the same time, the company received queries from some mobile postpaid customers about higher-than-usual data usage appearing on recent bills. It said this was separate from, and unrelated to, the price increases.
“This relates to a recent enhancement to the way mobile data usage is captured and recorded. After implementing it, we identified instances where recorded usage was higher than customers may have experienced in previous billing periods.
Our teams are reviewing affected accounts to ensure billing information is accurate and that customers are appropriately supported.”
Flow ended its statement by saying it remained committed to communicating openly and transparently with customers and would continue to provide information through its customary communication channels.
The FTC also offered advice to consumers: “In the meantime, consumers are encouraged to carefully review any communication received from Flow concerning changes to their services or charges and to monitor their bills to ensure that any changes are consistent with the notice they received.”
Consumers are also advised to review their current packages and consider whether those services still meet their needs.
“Consumers remain free to make their own decisions regarding the telecommunications services and packages that best suit their circumstances.”
The regulator said it would provide further information to the public as appropriate after considering the information Flow was asked to provide.
Flow Barbados is owned by Liberty Caribbean, formerly Cable & Wireless Communications, a subsidiary of the parent company Liberty Latin America. American cable magnate John C. Malone is the firm’s largest shareholder, and it trades publicly on the Nasdaq stock exchange.
(EJ)
