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Highlights:
- The Labour Party has pledged to enforce cheaper broadband tariffs for people in the low-income group.
- Calling it an essential utility, the party highlighted that Brits struggle to pay their broadband bills due to the cost-of-living crisis.
In its bid to woo Brits for the next elections, the Labour Party has announced that it will enforce cheap broadband tariffs for people in the low-income group if voted to power.
As per reports, the party has also pledged to act against the mid-contract price rises, stressing that broadband is an essential utility. Citing figures from telecom regulator Ofcom, the party has said that the number of households struggling to pay their broadband bills has doubled in the past 12 months, hitting 8 million or one-third of British households.
The party also called for an industry-wide social tariff for families in the low-income group, which should be discussed between industry players, Ofcom, and consumer groups. However, the party said that a failure to reach an agreement would mean that Labour will set a tariff and bring legislation to enforce it.
Image source: © Pearljamfan75 | Megapixl.com
Notably, several providers offer discounted deals called social tariffs. However, they are not well publicised as it is not mandatory for telecom companies to offer such deals for broadband products.
Besides, many providers also hike their prices in line with inflation measures through the Consumer Price Index (CPI) and an additional amount. Labour has claimed that it will make changes to disallow the providers to do so.
In the wake of this announcement, let us take a look at some UK broadband stocks and how they have been faring in the current market conditions.
BT Group Plc (LON: BT.A)
BT Group is the UK's leading telecommunication company and provides several telecom-related services. The company's workers have been staging walkouts for a few months over the ongoing dispute over pay. BT holds a market cap of £11,866.19 million, and its EPS (earnings per share) stands at 0.13. The company's turnover (on the book) is currently £3,672,219.48. Over the past 12 months, the stock has fallen by over 17%, and the year-to-date (YTD) return is -29.18%. BT Group's shares were up 0.46% at GBX 120.05 as of 12:03 pm GMT+1 on Thursday.
Vodafone Group Plc (LON: VOD)
Another leading British multinational telecom services provider is Vodafone Group Plc, a constituent of the FTSE 100 index. The company has a market cap of £27,352.13 million and a turnover (on the book) of £8,377,209.06. Its 12-month and YTD returns stand at -10.61% and -11.60%, respectively, and the EPS is at 0.07. Shares of the company were trading at GBX 99.21, up 0.26% as of 12:08 pm GMT+1.
Bigblu Broadband PLC (LON: BBB)
The company provides broadband services to regions that don't have fibre connectivity through alternatives like satellites. It is listed on the FTSE Aim All-Share index and enjoys a market cap of £23.95 million. Over the past 12 months, its share price has plunged by more than half, while the YTD return stands at -43.82%. BBB shares were down 1.22% at GBX 40.50 as of 12:09 pm GMT+1 on Thursday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
