The Consumers' Association of Singapore (Case) has joined the chorus of calls urging StarHub to allow its cable TV subscribers to opt out of their contacts with no penalty, in light of the impending increase in charges.

It has has written to pay TV operator, asking it to view the issue "positively".

StarHub announced last week that it will raise its pay-TV basic packages by $4 a month from July 11, and the sports package by $10, likely in October, sparking a wave of outrage from subscribers, who said the fee hike is unjustified.

Incensed subscribers have even posted rallying calls on the AsiaOne forum for consumers to band together and cancel their subscriptions in protest of the move.

But StarHub is also standing firm on its policy that consumers who have signed contracts before the fee increase will have to pay a penalty if they want to opt out, as they are contractually bound.

Case acknowledges that service providers have the right to adjust their prices, but they should also consider the plight of consumers when rates are increased drastically, The Straits Times reported today.

Case Executive Director Mr Seah Seng Choo, told AsiaOne that it has written two letters to the CEO of Cable Vision on June 13, expressing concern that some of the terms in the contract are "one-sided".

"We feel that consumers should be allowed to opt out without penalty in situations like this," said Mr Seah.

"If the adjustment is of such a high quantum, they should give consumers a second chance," he added.

"We have also requested for an urgent meeting with StarHub as many subscribers are unhappy with the proposed increase of fees for the football channel."

He also gave this advice to consumers: "Subscribers should exercise their rights and decide whether they would want to accept the proposed increase in fees."

"In the meantime, we will pursue the matter with Cable Vision and explore ways of helping the consumers."

The Straits Times also quoted Case president Yeo Guat Kwang as saying that the consumer watchdog is not against periodic price increases by companies if they are gradual and due to increasing business costs.

But where steep hikes are concerned, the company has a responsibility to justify this to consumers, said Mr Yeo.

In a related development, Case has registered its complaint with the Competition Commission of Singapore, saying it is "uncomfortable" with the size of the increase in transaction fees that e-payment provider Nets will be charging retailers from July 1.

"'I don't see how they can justify the increase to be of such a big quantum," said Mr Yeo, of Nets' monopolistic practices.