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Citizens Advice Criticises UK Broadband ISPs for Post Contract Price Hikes

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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


--- Quote ---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.
--- End quote ---

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:

--- Quote from: Bowdon on April 11, 2017, 10:26:16 AM ---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.

--- End quote ---

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  ;) 

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