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[Bowdon]

http://www.ispreview.co.uk/index.php/2017/04/citizens-advice-criticises-uk-broadband-isps-post-contract-price-hikes.html

On ISPreview.co.uk we’ve long made a point of highlighting post-contract / discount prices in our listings and we’ve frequently called for ISPs to make such details clearer. Today Citizens Advice has similarly warned that broadband prices can rise by an average 43% when fixed term deals end.

Crucially the CA notes that more than a third (35%) of broadband customers don’t realise they could face price hikes by staying on the same contract with their provider after their initial deal ends, which isn’t such a big surprise because a number of ISPs have a long history of hiding post-contract prices in the small print.

There is a chart on the news page that shows the numbers.

I don't understand why there is such a hike. Don't the ISP want the customers business after the contract? It's as though they try to get rid of the customer at all costs even if it means losing them. If this is their way of encouraging people to re-contract it seems pretty bad, especially when the ISP's don't make any special effort to contact the customer.

The table shows how big the increase is: BT at 67%, VM at 0%, TalkTalk at 28%, Sky at 53%, EE at 36%.

Why is it VM can be at 0% and all the people using BT's network is at least 28% ? Is this a case of 'follow the leader' i.e. a culture of increase?

When are these companies going to get a brain and start thinking, why the heck are we charging these increased prices? We already know if you run out of contract that you lose the support part. So there is encouragement there to re-join. These hiked prices seem like they are punishing the customer.

What's other peoples thoughts on this?

[Chrysalis]

its the end of introductory offers rather than price hikes, I do think its a bit misleading.

Of course some people are constantly either jumping isp or retention deals so the normal base prices to them seem like massive price hikes.

Broadband has become like electric/gas where if you not constantly jumping ship you pay a lot more.

[renluop]

It's the way of a commercial world built for fickleness. On one side there is the chasing of numbers, no matter what cost or service decline, encouraged by tempting offers.

On the other are the sinners mugs, so blinded by the marketing Satan, that they do not realise that, like with any temptation, a price has to be paid in £££, or service standards. There is the labour in changing too; another price.

What must the churn rate be, the payback time for the offers!? It all seems deluded madness!

[ejs]

When are these companies going to get a brain and start thinking, why the heck are we charging these increased prices? We already know if you run out of contract that you lose the support part. So there is encouragement there to re-join. These hiked prices seem like they are punishing the customer.

I think the support from most ISPs is the same whether you are in a fixed-term contract or not.

I guess the only solution will be to somehow ban introductory offers. Presumably the prices wouldn't be as low as the current fixed-term deals if everyone were indefinitely paying those prices. Or perhaps they could turn off people's broadband at the end of their term, and stop billing them.

What bothers me is that on one hand, superfast broadband is incredibly important, even considered essential, yet on the other hand, people don't seem to want to pay any significant amount of money for it. There must be something about broadband not being a physical object, that somehow makes people think that it's not worth very much.

[NewtronStar]

Don't know about you but I see broadband as a luxury, items like water+food electricity and heating and a house over your head are essential for life and if you can get Broadband monthly bill lower then more money in your pocket for those essentials   

[Bowdon]

What bothers me is that on one hand, superfast broadband is incredibly important, even considered essential, yet on the other hand, people don't seem to want to pay any significant amount of money for it. There must be something about broadband not being a physical object, that somehow makes people think that it's not worth very much.

I think its both a blessing and a curse for ISP's. If everyone was as interested in broadband as we are, can you imagine the level of complaints.

In a way complaining about broadband as become the 'norm' for most people. Probably because most people dont really know much about the Internet, as in how it works. They only know websites, email and social media.

I think the more netflix, amazon prime and similar services are popular and move to be an alternative way of broadcasting, which both BT and others want, then I think peoples expectations to deliver a high quality and reliable service is going to increase.

[Chrysalis]

banning introductory offers would be great but I think they are trying to do that on gas/electric and meeting stiff resistance from the industry and have backed down.

[niemand]

Tricky.

If we can ban the special offers and prevent the massive cross-subsidy that still goes on by Sky and others that'd do nicely. We're at the stage where people are using broadband services for way more than they used to but still refuse to pay for it, and hold entirely unrealistic expectations.

The various consumer groups, being clueless as they are about these things, aren't helping, teaching people to expect the Earth for next to nothing as that's what the two operators most directly to blame for the situations with price and indeed price:performance ratio, Sky and TalkTalk, have trained them to do.

[gt94sss2]

Nothing wrong with introductory offers so that savvy consumers can take advantage of them. One of the downsides of the changes to energy tariffs is that many consumers are now paying more than they did because providers have removed their cheapest tariffs as a result.

Sadly, you see Ofcom going down this path with their proposed £5! cut just on BT line rental only customers which is truly a half baked idea.

However, I agree with stopping cross subsidy though and would also favour Openreach being able raise the price of their wholesale line rental to generate funds for extra investment.

[Chrysalis]

gt94, the introductory offers (and I guess retention deals) means those not on those deals pay more to subsidise.

The money has to come from somewhere and its not the shareholders.

[gt94sss2]

I suspect banning retention deals rather than introductory offers would be more effective at keeping prices down for the majority.

Many introductory offers come from firms marketing budgets anyway..

[niemand]

I'm not sure about this. Just end up with everyone watching MoneySavingExpert emails for the next introductory deal.

It's not really something it's possible to legislate or regulate I think.

[Chrysalis]

this is been tested on electric/gas with the tories promising a cap on non promotional tariffs of course industry is fighting but it may set a precedent if it happens