Are there any broadband providers without CPI increases?

rjmachin · 10 March 2021 at 10:25PM

I just think the fair thing for the consumer would be to offer 12 month fixed price contracts so that you know what you are paying, with the knowledge that once your minimum term ends, your price will revert to the standard price unless you renew a "deal" or switch supplier.

Comparing it to Gas/Electric, when I sign up to a fixed contract, I expect the same per kWh price for 12 months, where as on a variable contract, I would expect the price to fluctuate

Mickey666 · 11 March 2021 at 2:38PM

rjmachin said:

Mickey666 said:
A grand 'uncertainly' of 25p/month or £3 over an entire year.
Seems to me a very trivial thing to get so worked up and hateful about.

It may seem trivial, but over time it all adds up. Based on the 2% CPI example:
Year 1: £1.47 extra per month (£17.64 year)
Year 2: £1.56 extra per month (£18.72 year)
Year 3: £1.66 extra per month (£19.92 year)

Over three years that's over 18% increase from the original of price £25 to nearly £30 per month.

True, and the fact that you're been able to calculate it shows that it is quite clear. But you were moaning about the UNCERTAINTY of the pricing, which is very different tthing o a clearly stated annual increase.

As I showed, the actual UNCERTAINTY is so tiny as to be inconsequential.

Mickey666 · 11 March 2021 at 2:42PM

rjmachin said:

I just think the fair thing for the consumer would be to offer 12 month fixed price contracts so that you know what you are paying, with the knowledge that once your minimum term ends, your price will revert to the standard price unless you renew a "deal" or switch supplier.

Comparing it to Gas/Electric, when I sign up to a fixed contract, I expect the same per kWh price for 12 months, where as on a variable contract, I would expect the price to fluctuate

What you think is fair is not really relevant is it? Companies can offer whatever (legal) terms they wish.
What is important is that the contract terms are CLEARLY specified. You are then able to make a fully informed decision whether or not to buy.
In this case the contract terms ARE clearly specified, so clear that you are able to calculate the cost increases three years out with only the tiniest of UNCERTAINTY.

PS: I'm not defending their pricing model as such, but it is what it is. They key thing is for it to be clear and understandable, which I think it is (and presumably so do you as you've done the calculations).

rjmachin · 12 March 2021 at 7:50AM

Mickey666 said:
What you think is fair is not really relevant is it? Companies can offer whatever (legal) terms they wish.
What is important is that the contract terms are CLEARLY specified. You are then able to make a fully informed decision whether or not to buy.
In this case the contract terms ARE clearly specified, so clear that you are able to calculate the cost increases three years out with only the tiniest of UNCERTAINTY.

PS: I'm not defending their pricing model as such, but it is what it is. They key thing is for it to be clear and understandable, which I think it is (and presumably so do you as you've done the calculations).

I was originally asking what providers are out there that do not have these kind of terms in place, as is the title of this thread.

This was after I kept seeing the adverts with really small writing at the bottom of these TV screen regarding the annual increases. I, as probably many others, have now come to expect these increases after being subjected to them for years now, however, some people may not be aware of them or not realise it.

This is where it is not clear enough.

I was only able to determine the price increases after you told me the rough percentage and then used a calculate to add the cumulative increase to year 1, then year 2. Average Joe bloggs who just wants cheap broadband isn't going to do that.