Why do they do this?
Discussion
Just renewed my broadband contract and saw this:
'The price for broadband, line rental, call plans, call charges and add-ons will be increased each March from 2022 by the Consumer Price Index rate of inflation published by the Office for National Statistics in January of that year plus 3.9%.'
Plus 3.9%? Why? Do they not realise this is just adding to inflation?
Then again, it's about 6% less than the current rate, so maybe deflationary... If it wasn't so hot I'd get me coat...
'The price for broadband, line rental, call plans, call charges and add-ons will be increased each March from 2022 by the Consumer Price Index rate of inflation published by the Office for National Statistics in January of that year plus 3.9%.'
Plus 3.9%? Why? Do they not realise this is just adding to inflation?
Then again, it's about 6% less than the current rate, so maybe deflationary... If it wasn't so hot I'd get me coat...
alscar said:
Similar to mobile phones when they tempt you to upgrade using “ fixed period contract “ prices and then add that inflation factor each year - not really my definition of “fixed “ but in T and C so I guess that’s fine !
This is inflation and then another 3.9% on top... anything that exceeds the rate of inflation must fuel inflation... though of course this year inflation is doing quite well without extra help.Why do they do it? Because they can. They're all at it so you've no choice but to accept it. One day a provider might offer a truly fixed rate for the duration of the contract, then the others will have to follow or they'll risk losing business. Until then we just have to suck it up.
MitchT said:
Why do they do it? Because they can. They're all at it so you've no choice but to accept it. One day a provider might offer a truly fixed rate for the duration of the contract, then the others will have to follow or they'll risk losing business. Until then we just have to suck it up.
It may be a way of clawing back some of the cash they lost offering me the 'amazing' deal...In practice (1) nobody reads T&Cs (and even if you did what would you do if you found something you didn't like?); (2) if you switch you know that it will go tits up and you'll have no broadband for a week and double charges... so yes, 'because they can'.
The Environment Agency must be upset. For the last few years they've been piling on the price of a boat licence at about 5x the rate of inflation (because they can). They must have been so pleased last year to set the 2022 increase at a whopping 7%. Except in real terms it's -3%. Is that a win to the punter?
MitchT said:
Why do they do it? Because they can. They're all at it so you've no choice but to accept it. One day a provider might offer a truly fixed rate for the duration of the contract, then the others will have to follow or they'll risk losing business. Until then we just have to suck it up.
Zen Internet offer this.Simpo Two said:
Plus 3.9%? Why? Do they not realise this is just adding to inflation?
Where did this narrative come from that no one should ever seek a wage rise or price rise because it’ll make inflation worse? No one has individual responsibility for an economy’s inflation, we’re all just trying to do the best we can for our own little worlds. Besides, the impact is trivial.Try Plusnet.
I don't think that I'm paying any more now than I was when I first joined years ago.
I probably am, but it isn't an issue that I'm bothered about as they always contact me when the contract is about to end and offer their latest low price offer, which is about the same as I'm paying anyway.
So if I'm being turned over, then they're doing it well.
Everybody's happy.
I don't think that I'm paying any more now than I was when I first joined years ago.
I probably am, but it isn't an issue that I'm bothered about as they always contact me when the contract is about to end and offer their latest low price offer, which is about the same as I'm paying anyway.
So if I'm being turned over, then they're doing it well.
Everybody's happy.
Simpo Two said:
rfisher said:
Try Plusnet.
It is!As for the 'seeking a wage rise' issue, the 3.9% was not presented as a 'We want to pay our staff more'. You see, every £ one man gets is a £ someone else has to pay.
I've just read their CPI Plus 3.9% Guide, which didn't upset me either.
[i]These price increases will apply to you unless you are currently in a fixed price contract minimum term.
For customers who are in a fixed price contract minimum term, with the exception of BT Sport, these price increases will only apply to you once your minimum term ends. Please note that if you signed up to a BT Sport service on or after 9th December 2020, the pirice of your BT Sport service will increase by CPI plus 3.9% as set out in your terms and conditions and as explained in more detail below. [/i]
Presume that you're not on a fixed price deal?
I renewed my 24 month contract last month.
I'm an early internet adopter and recall paying Freeserve something like £15 a month for a 1Mb capped data download.
Yes that's £15 a month for 1Mb data on a home dialup to Freeserve.
Only 20 years or so ago as well.
So paying Plusnet £24 a month for an uncapped service still feels like a bargain.
I was actually paying £26 a month before renewal and not fixing would have been £42 per month.
Just being able to watch things like this is enough to make me feel like I'm winning.
Yes that's £15 a month for 1Mb data on a home dialup to Freeserve.
Only 20 years or so ago as well.
So paying Plusnet £24 a month for an uncapped service still feels like a bargain.
I was actually paying £26 a month before renewal and not fixing would have been £42 per month.
Just being able to watch things like this is enough to make me feel like I'm winning.
rfisher said:
I'm an early internet adopter and recall paying Freeserve something like £15 a month for a 1Mb capped data download.
Yes that's £15 a month for 1Mb data on a home dialup to Freeserve.
I thought the idea of Freeserve was that it was free, and they got their money somehow by advertising. Several companies all started offering free internet, but attracted more business than they could handle and fell over. I still have a Freeserve CD in a cupboard somewhere (free from Dixons!)Yes that's £15 a month for 1Mb data on a home dialup to Freeserve.
They do it because they can
I don’t know why they are allowed too, surely the whole
Point of a contract is that it’s fixed priced, so if they haven’t factored in costs going up then that’s their own fault.
People aren’t automatically aloud to have a CPI plus 3.9% payrise ever year they have to ask for it.
BT doesn’t put its wages up for its staff anywhere near that. (£1500 offered this year flat rate)
I don’t know why they are allowed too, surely the whole
Point of a contract is that it’s fixed priced, so if they haven’t factored in costs going up then that’s their own fault.
People aren’t automatically aloud to have a CPI plus 3.9% payrise ever year they have to ask for it.
BT doesn’t put its wages up for its staff anywhere near that. (£1500 offered this year flat rate)
Freeserve email from 2002;
You may have seen our advertising for Freeserve Broadband which gives you 'always-on, high speed' Internet access. With Freeserve Broadband you can stay connected to the Internet permanently and still receive phone calls on the same phone line. It's up to 10 times faster than a normal 'dial up' Internet connection and is set to revolutionise the way we all use the Internet. To find out more about Freeserve Broadband and how you can enjoy the freedom of high speed Internet click here. You can get Freeserve Broadband for just £29.99 per month and we're currently offering free connection worth £65!
That was capped at 1Mb per month IIRC.
And this was all fields.
You may have seen our advertising for Freeserve Broadband which gives you 'always-on, high speed' Internet access. With Freeserve Broadband you can stay connected to the Internet permanently and still receive phone calls on the same phone line. It's up to 10 times faster than a normal 'dial up' Internet connection and is set to revolutionise the way we all use the Internet. To find out more about Freeserve Broadband and how you can enjoy the freedom of high speed Internet click here. You can get Freeserve Broadband for just £29.99 per month and we're currently offering free connection worth £65!
That was capped at 1Mb per month IIRC.
And this was all fields.
'Broadband' was very sexy when everyone else had dial-up modems, websites were a few pages of text and nobody was downloading stuff. And there was ISDN too.
I once produced a video for Nortel and visited their 'Broadband Centre' - which was a small area upstairs with LCD glass panels all round. I had no idea what it was; all top secret.
Indeed it was PH which finally induced me to move to broadband because the pages took so long to load...!
I once produced a video for Nortel and visited their 'Broadband Centre' - which was a small area upstairs with LCD glass panels all round. I had no idea what it was; all top secret.
Indeed it was PH which finally induced me to move to broadband because the pages took so long to load...!
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