Phone and internet services can cost up to 50% more in the UK than the standard prices in Europe. The Guardian investigates

A Guardian Money investigation has found that British home phone and broadband customers are paying between 25% and 30% more for their service than they did four years ago – and as much as 50% more than standard prices in Europe – amid growing concern at the lack of competition in a market dominated by ever fewer players.

Next month TalkTalk, which supplies 4m homes in the UK, becomes the latest supplier to push through a second large price increases in a matter of months. Its landline charge rises to £17.70 a month from £16.70, while its Simply broadband package jumps from £5 to £7.50 a month – just four months after it last increased that tariff.

Ofcom claims that the UK market is one of the most competitive and keenly priced in the world

Meanwhile BT, Sky, Virgin and Plusnet (part of BT) have all put up their charges by between 6% and 10% on top of previous big rises.

The telecoms regulator Ofcom claims that the UK home phone/broadband market is one of the most competitive and keenly priced in the world. However, following a raft of corporate mergers and a series of inflation-busting price hikes, consumers are asking if they are receiving a fair deal.

The typical BT customer with a landline and broadband deal is now paying £38 a month once the introductory deal runs out, compared to £24 paid by the French for a similar deal (see below).

Analysis carried out for the Guardian by comparison site Simplifydigital shows existing customers who take a basic broadband and home phone package have seen their overall package costs rise by between 25% and 30% since 2011, once introductory offers are stripped out.

Loyal customers are being hardest hit, prompting critics to liken the telecoms market to the UK’s energy sector, where loyal customers of the “big six” suppliers pay significantly more than those who regularly switch company.

It’s the existing customers that have borne the brunt of the increase in landline and package costs over recent years Ewan Taylor-Gibson, uSwitch.com

The telecom providers have more of a captive market, with many consumers fearful of switching because of the risk of losing vital internet access. Around 30% of broadband users have never changed provider.

Recent price rises have baffled consumers, particularly as they come amid almost negligible inflation and with the costs of technology falling.

Ofcom says landline price increases are due to the steep decline in phone call income. As more of us use email, messaging or mobiles to talk to friends, the number of landline calls has collapsed. Critics also wonder if BT is trying to recoup the £897m it paid for rights to Champions League football.

In 2006, when TalkTalk offered a groundbreaking free broadband deal, the UK arguably had one of the most competitive telecoms markets in the world.

However, a host of takeovers have seen Blueyonder, Tiscali, AOL, BE, Tesco, O2 and others swallowed up by bigger rivals – in most cases by TalkTalk. According to Ofcom, 88% of broadband lines were provided by one of the big four providers – BT, Sky, TalkTalk and Virgin – during 2014. That figure will rise to 92% if BT’s takeover of EE goes ahead.

Ewan Taylor-Gibson, broadband expert at uSwitch.com, suggests there are now strong similarities with the energy sector: “Broadband customers who are prepared to switch provider have never had it so good.

“However, it’s a very different story for existing customers. They typically see their bill rise by 89% when they come off the deal. It’s the existing customers that have borne the brunt of the big increase in landline and package costs over recent years.”

Chris Williams of Simplifydigital agrees: “There is no doubt that existing customers at the major broadband suppliers are facing higher prices than they did four or five years ago.”

Ofcom says it is carrying out a fundamental review of the telecoms market designed to make sure that it continues “to work for consumers”, and it “recently made switching telephone and broadband providers much easier for millions of consumers … We also protect people on social benefits by requiring BT to make available a low-cost telephone service”.

Richard Lloyd, Which? executive director, this week urged Ofcom to use that review to help “reset customers’ relationships with their telecoms providers and ensure they are getting a fair deal”.

How Britain compares

United Kingdom

Long-term BT customers in the UK on the basic home phone/unlimited broadband will soon pay £20.47 a month, plus a monthly landline charge of £17.99. For a shade over £38/month they get a broadband service of “up to 17 Mbps” with unlimited downloads. Users get free weekend calls. Similar TalkTalk customers on its Simply Broadband (unlimited) tariff will soon pay £7.50 a month plus £17.70 a month line rental.

France

BT’s French equivalent is Orange. Its “L’essentiel d’internet à la maison” deal is probably its most popular and costs existing customers €33.99 ( £24.68) a month. For that, customers get broadband, a phone line, a TV package (not available everywhere) and unlimited calls to other landlines (which will soon costs BT customers a further £7.95 a month). Cheaper rival Free offers the same deal for just €29.99 (£21.90) a month.

Germany

Deutsche Telekom was the monopoly internet service provider until its privatisation in 1995. Its cheapest home phone broadband package costs €34.95 (£25.50) after the initial discount period. Its rival 1&1 offers the same unlimited package for €29.99 (£21.90) a month – again once the teaser rate has ended.

Spain

Spain’s equivalent of BT is Telefónica, which also owns 02 in the UK. Its brand Movistar currently charges €41.72 (£30.40) a month for its basic fixed landline and broadband (up to 30MB) service in Spain, although that includes unlimited calls to other landlines. Cheaper rival Tele2 offers a similar deal for €26.25 (£19.15) a month.

Ireland

Irish telecoms customers receive a relatively poor deal. Eircomis the original monopoly landline provider, the Irish equivalent to BT, has a basic phone plus broadband deal at €25 (£18.25) for the first four months then a hefty €62 (£45.25) thereafter, although this is for an “up to 100Mps” fibre service. The price includes unlimited anytime home phone calls to Irish landlines and mobiles. Irish customers can find much cheaper deals at rival Sky – its basic phone and broadband deal in Ireland is €30 (£21.90) a month – with customers free to leave after 12 months.