topic Re: Price increase on the way? in Plusnet Feedback

Price increase on the way?

Anonymous — Wed, 07 May 2014 09:06:03 GMT

Looking at the 'Here's the legal bit' section under the latest offers on the PlusNet website, it looks like we have another price increase on its way:
"If you sign up from 7th May to 9th June;
You must sign up to a 12 month minimum contract for:
•Plusnet Unlimited Broadband and;
•Plusnet line rental at £14.50 a month, which includes weekend calls or Line Rental Saver at £131.88 by paying for 12 months in advance (equivalent of £10.99 a month) which doesn't include any inclusive calls.
If you sign up from 10th June to 8th July;
•You must sign up to a 12 month minimum contract for:
•Plusnet Unlimited Broadband and;
•Plusnet line rental at £15.95 a month, which includes weekend calls or Line Rental Saver at £155.88 by paying for 12 months in advance (equivalent of £12.99 a month) which does not include any inclusive calls."
That is a 10% increase in line rental charges - way above inflation, and for those with LRS, a whopping 18%+ increase... It also seems that the price for PlusNet Unlimited outside of low cost areas will be increasing from £16.99 to £17.49.
Although these increases are for new customers, I guess we would be naïve to think that the rest of us will escape for long... Perhaps someone from PlusNet could comment?

Re: Price increase on the way?

grahamt — Wed, 07 May 2014 09:11:24 GMT

Well spotted.
I suspect you're right about the increases to come. I also suspect that all the suppliers are increasing their line rental above inflation. Clearly their marketing tells them that if they keep the headline price for broadband artificially low, then customers won't notice the compulsory line rental prices (that are probably well above the actual costs of maintaining the average line). It would be nice for a supplier like Plusnet to work in a different way, but I doubt whether it will happen.

Re: Price increase on the way?

Fireant — Wed, 07 May 2014 09:18:30 GMT

shocked !!!! line rental just greedy twats like all the rest of so called isps .

Re: Price increase on the way?

Chris — Wed, 07 May 2014 09:24:22 GMT

Let me follow this up and get back to you later.

Re: Price increase on the way?

Anonymous — Wed, 07 May 2014 10:03:11 GMT

I wonder whether it is related to this - Fixed Access Review Delay Triggers BT Openreach UK Line Rental Hike

Re: Price increase on the way?

ITWorks — Wed, 07 May 2014 10:26:06 GMT

From the link above

Quote
The WLR service will thus rise from £93.32 to £96.17

So the increase of £2.85 , yet PN wish to charge the customer an extra £ 24.00 a year
Regards
Mike

Re: Price increase on the way?

picbits — Wed, 07 May 2014 10:33:11 GMT

Not clear if that is inc. Vat or exc. Vat on the BT increase - I suspect it is ex vat.
So BT charge PN £96.17+vat = £115.40 per year for providing the line. This is £9.61 inc vat per month cost price.
Plusnet charge £12.99 per month on LRS so a profit of £3.38 a month - not excessive really on the LRS side (around a 35% margin).
Obviously they *may* make more on the non LRS stuff at a higher price but this includes weekend calls so maybe they pay a bit extra for that ?

Re: Price increase on the way?

TORPC — Wed, 07 May 2014 17:48:39 GMT

Will people in contract, be affected by this & have their prices adjusted to suit
Or
Does the only affect new customers

Re: Price increase on the way?

Chris — Thu, 08 May 2014 08:04:24 GMT

As the offer runs over a period where we’re intending on altering prices for *new* customers we must include this in the T&Cs of the offer. The price increases will come into effect for new customers signing up from 10th June. Customers signing-up before this date will get the current pricing advertised. This will be part of a wider product refresh of which further information will be available in June.

Re: Price increase on the way?

newagetraveller — Thu, 08 May 2014 09:59:26 GMT

"This will be part of a wider product refresh of which further information will be available in June. "
I'd like to be proved wrong, but, in plain English, means across the board price increases for everybody.

Re: Price increase on the way?

Oldjim — Thu, 08 May 2014 10:07:49 GMT

Flaming optimist - you won't be
As my cheap deal runs out about then a call to COT would seem a good idea

Re: Price increase on the way?

dsw — Thu, 08 May 2014 10:15:56 GMT

Line rental is cheaper with the post office then at £10 a month.

Re: Price increase on the way?

Anonymous — Thu, 08 May 2014 10:33:40 GMT

Why 10th June ?
If the result of the OFCOM market charging structure review is due to be announced on the 1st July (See Reply #4), then consequentially the future pricing BT charges the ISPs for line rental, and broadband costs in the new "Market A" and "Market B" exchanges, will change !
What is the point of Plusnet potentially changing prices and terms & conditions, in two successive months ?
In addition, this OFCOM review will also give Plusnet a lot of extra work, with many existing customers wanting to have their payment terms changed when they discover their exchange has been reclassified from "Market 1 or 2" to the lower cost "Market B" rate, as a lot of exchanges now have more than one line provider.

Re: Price increase on the way?

janitor — Thu, 08 May 2014 10:41:04 GMT

Yes but post office use talktalk :'(, be afraid be very afraid.

Re: Price increase on the way?

w23 — Thu, 08 May 2014 10:47:52 GMT

Quote from: newagetraveller
I'd like to be proved wrong, but, in plain English, means across the board price increases for everybody.

Only line rental has been mentioned so far (and that's for new customers presumably on a cheap broadband deal), maybe (you never know) the broadband price (for existing customers) will go down by the same amount (or more). It's not like Plusnet to make themselves uncompetitive, which £15.95 per month for line rental is IMO, though there's a first time for everything.
I do appreciate good, honest cynicism but I also hope you're being over pessimistic in this particular instance.
Only time will tell I guess.

Re: Price increase on the way?

Anonymous — Thu, 08 May 2014 11:23:22 GMT

Quote from: w23
Only line rental has been mentioned so far ...

Not so... As I mentioned in my original post, it looks like the cost of Unlimited outside low-cost areas is increasing from £16.99 to £17.49. Here are the relevant bits from the 'Here's the legal bit' section:
"If you sign up from 7th May to 9th June...
After the 12 month offer period you'll simply pay the standard price for your Unlimited Broadband (currently £9.99 a month in low cost areas otherwise £16.99 a month).
If you sign up from 10th June to 8th July...
After the 12 month offer period you'll simply pay the standard price for your Unlimited Broadband (currently £9.99 a month in low cost areas otherwise £17.49 a month)."

Re: Price increase on the way?

jelv — Thu, 08 May 2014 12:17:50 GMT

Quote from: janitor
Yes but post office use talktalk :'(, be afraid be very afraid.

If that's the Wholesale side of TalkTalk they are OK - Andrews & Arnold use TalkTalk Wholesale lines so they can't be that bad! (http://aaisp.net.uk/broadband-TT.html)
It's TalkTalk Retail who are crap!

Re: Price increase on the way?

janitor — Thu, 08 May 2014 12:22:23 GMT

If you look at the post office telephone and bb forum on think broadband, once TalkTalk took over a company that never had hardly any complaints, was all of a sudden getting loads, so I think anything tt touch turns to mush.

Re: Price increase on the way?

w23 — Thu, 08 May 2014 12:32:58 GMT

Quote from: alanj
Quote from: w23
Only line rental has been mentioned so far ...

Not so... As I mentioned in my original post, it looks like the cost of Unlimited outside low-cost areas is increasing from £16.99 to £17.49.

Sorry, my mistake, missed that specific point (luckily I have no concern myself about high-cost area pricing). Might the change from Market 1/2/3 to Market A/B (and the relative number of customers in each area) be the driving factor for this change?
Fingers still crossed for no general increase in Broadband pricing since I'm happy with Plusnet and don't want to have to go shopping elsewhere.

Re: Price increase on the way?

nanotm — Thu, 08 May 2014 13:15:15 GMT

it would rather depend how fast PlusNet apply the price change, surely if they get enough customers before the announcement then there price wont change until the contract refresh point