Plus Nett Pulling my Leg?

Leodogger

Anyone noticed that broadband companies are extending their contract length to 2 yrs now that inflation is running out of control?

My contract was up for renewal and I scanned the market and found a deal with Shell Energy for £27.19 for 12 months this was for 38, fully inclusive calls and landline which is my current deal with Plusnett.     So I dutifully rang Plusnett to ask for a matching price deal which they agreed to at £27 BUT for 24 months, adding that after 12 months the price increases by CPI +3.9%, so effectively I will be paying 11% more for my package come next September.    Surely I am being ripped off ?   My previous contract was for 18 months and there was a small increase in June last, but surely 11% is taking the P!! 

Neil_Jones

2 year contracts aren't new at all.

The CPI+3.9% increase isn't new either.

And the CPI is based on what it is in January for the following April - there is a chance it won't be as high as it could have been, bearing in mind it last went up by something like 9.3%.

TOP_CAT

Just for info .
 I was on a plusnet 18mth contract for £18.99 at 35mb which came with a £75 prepaid card .
With about 6 months left on the contract to go it had gone up to £25+ and then this last april it went up to £27+.
On average though ..... the monthly charge with the £75 off was still working out ok .

I phoned plusnet up about something else and they offered me 60mb/65mb  over 12mths at £23 a month with £25 incentive off before my 18mth contract ended .ie I still had 6 mths left aprox .

So I took the 12month deal at £23 as renewing later in six months seemed  even more painful .
I didnt actually need the 65mb as 35mb had worked out fine .

Im not sure If I made the right decision or not as the plusnet sales guy was chomping at the bit to get it done .
Nevertheless it shows they sold a get out of contract offer

iniltous

If you don’t want a 24 month PN contract ,@£27 but subject to the annual CPI based  increase obviously have the option to go with Shell for £27.19 , and in 12 months see what they have to offer as a deal to keep you , if you assume PN will go up to around £31 , Shell may be cheaper than this but it’s unlikely their price will still be £27.19 in 12 months time ,  most likely it will be more and possibly a similar size increase  ( but who can tell , they all have the same increasing cost pressures , but who knows where it will be ) but you would be free to shop around…. 

TBH, I don’t  think you are being ripped off or they are taking the P , they have made an offer , which you can accept or refuse 

[Deleted User]

The OP might wish to read the link below:

https://www.ispreview.co.uk/index.php/2022/09/bt-boss-says-future-of-low-cost-uk-isp-plusnet-is-under-review.html

400ixl

[Deleted User] said:

The OP might wish to read the link below:

https://www.ispreview.co.uk/index.php/2022/09/bt-boss-says-future-of-low-cost-uk-isp-plusnet-is-under-review.html

All that will happen if Plusnet is stopped is the customers will migrate to EE or BT getting the same service under a different wrapper. Plusnet has been under review many times over many years. Not worth letting it influence any decision on whether to stay with them or not.

Leodogger

I have been thinking about it and as someone said, in 12 months time who knows what rate of inflation will be around and it could go higher, the problem is when the interest rate rises they are at liberty to keep increasing the prices whether or not they are being pushed on their costs but when the interest rate drops it is rare they drop their rates in the future to existing customers.   PN did tell me that the most costly element is the call package which I always need which they can't discount.

JohnReese

Leodogger said:

I have been thinking about it and as someone said, in 12 months time who knows what rate of inflation will be around and it could go higher, the problem is when the interest rate rises they are at liberty to keep increasing the prices whether or not they are being pushed on their costs but when the interest rate drops it is rare they drop their rates in the future to existing customers.   PN did tell me that the most costly element is the call package which I always need which they can't discount.

I agree that these companies don't reduce the price if inflation were zero, nor does the customer suddenly get to say mid contract that they may choose to pay less. There are some newer Broadband providers who offer both fixed prices and shorter contracts. Those have actually offered what contracts frankly should be - i.e. a fixed price. Most of the time, these are excellent value for Full Fibre (FTTP) products with contracts varying from 30 days to 12 months.

It is my understanding that Sky had recently said they would fix prices for 18 months if that's of any help.

If FTTP isn't yet available, then it might be worth considering going for an Unlimited Data SIM from a Mobile provider that fixes their prices (e.g. Asda Mobile, Lebara, Lyca, Smarty). 4G speeds may well be faster than what is on landline FTTC broadband products. And the advantage is that these SIM contracts often are much shorter. You can either use them in a "Mifi" device, or in a phone and tether it (in which case, Tesco Mobile is another option).