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Contract length, how long would you commit for?

Santiago
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Posts: 3,291
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Registered: ‎10-08-2007

Re: Contract length, how long would you commit for?

Quote from: puddy
 
12 month contract Total price 35x12=420 Nokia N95 (clearance) and £140 back from CPW send bill in at month 4 8 12  total price £0.00plus and  at the end of contract phone to sell on eBay.  600min any network any time and 100 text.

That is a good plan. Can you please point me to a link where I can apply for this contract?
mal0z
Grafter
Posts: 3,486
Registered: ‎02-10-2008

Re: Contract length, how long would you commit for?

Quote from: Alex
Who spends less than £20 per month on a contact phone account now Grin

Lots of people - children, people on low wages, people who only have it as an emergency contact, pensioners etc etc
And I rarely go near than, I use my "free calls at home on landline" and I use text a lot, with a deal that is 5p per text.
Tesco do a good deal, the credit doesn't last a month, so you pay £10 and then it lasts as long as you want.
So no long contract. Maybe ISP's should have a contract based purely on amount of data transfer, with a very minimal circuit rental ?.
paulby
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Registered: ‎26-07-2007

Re: Contract length, how long would you commit for?

Quote from: Alex

Who spends less than £20 per month on a contact phone account now Grin

I do!  £12/month to be exact.  100 minutes and unlimited texts.  £15/month contract with 20% "loyalty" discount + new phone.  I had to sign up for another 18 months but at £12/month I was happy!
However, to get back on topic, one of my referrals has just signed up to Value for 18 months (market 3 exchange).  He said that the long contract didn't bother him as he was happy with PN and had no intentions of leaving (he cited customer support as being the main reason).  He also said that, as far as he was concerned, it was the "norm" to have to commit for 18 months if you wanted the best deals!!!
HPsauce
Pro
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Registered: ‎02-02-2008

Re: Contract length, how long would you commit for?

Quote from: Alex
Who spends less than £20 per month on a contact phone account now Grin

£4/month  Cheesy
No calls or texts included (though Voicemail is free) but that's actually a minimum charge.
It's an old contract that I hang on to as it's so good; call and text rates are very low and I pay for what I use.
If I use less than £4 worth in a month then the charge is rounded up to £4, if over £4 I only pay for what I've used - no overheads at all.
All done as a normal contract, international roaming at excellent rates, but no longer available to new customers.
As I don't use a mobile much to make calls it's ideal for me.
Alex
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Registered: ‎05-04-2007

Re: Contract length, how long would you commit for?

Whilst I realise this poll is hardly representative of the UK population as a whole, I do find the results interesting.
In that some people are fine with contracts, which I can understand if they are happy where they are and don't intend to move. Where as others, like me, don't like commitment (maybe that says something about my personality), even though I'd be the kind of person who would probably stay for the contract duration anyway.
I'm not against products with incentives for having a minimum term, it's a shame PlusNet (and other companies like Sky, etc.) don't offer something without those incentives. Especially when you consider, those that have the option of leaving but don't for the duration would make the company more money.
I do feel PlusNet are shutting themselves out of a certain group of people, where there is no reason to do so.
I thought they wanted to expand their subscriber base, or maybe they just want to reduce churn.
puddy
Grafter
Posts: 1,571
Registered: ‎10-06-2007

Re: Contract length, how long would you commit for?

Quote from: Santiago
That is a good plan. Can you please point me to a link where I can apply for this contract?

This type of contract is not advertised if your with 02 or cpw or 3HG  at the end of contract ask them at month 11 to disconnect your service, Then they will transfer you to another dept who will offer good deals to stay.  Just keep saying no and ask them were to send your disconnection letter too. 
In the last month expect letter phone calls saying what can we do to keep you? Ignore them until the day before disconnection.  Now you will be offered killer deals, be helpful by asking them for plans on clearance  phones tell them you want a cashback deal. 
4 friend s in jan-feb got a free phone and 12 month cashback deal with my help with 02 at cpw.
These deals are not advertised or offered in any shops you have to deal with them direct
Puddy
Santiago
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Registered: ‎10-08-2007

Re: Contract length, how long would you commit for?

Thanks Puddy. That is definitely worth trying.
Laser
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Registered: ‎23-09-2007

Re: Contract length, how long would you commit for?

I don't have a problem with a contract term as a general principle, if there is an obvious initial cost that it's trying to recoup.
When I first joined PlusNet they had the option of the You Stay We Pay thing where the activation fee was reduced over 5 years. I didn't have a problem with that, as the terms stated I could leave if I wanted but would have to pay that initial fee. In the case of a mobile phone contract they're trying to cover the cost of the shiny new phone you've been given.
However, the way in which these new broadband packages are long-term for no apparent reason is very off-putting. An existing customer doesn't want activation, doesn't want hardware, doesn't need admin to create account names, etc, so why do they have to stay for 12 months when they're already on a 1-month term? Even new customers aren't being offered the option of paying the ~£50 activation up-front and taking no hardware in exchange for a short contract term. The whole thing stinks of foreknowledge of people wanting to leave. BT have been trying similar tricks with the "free evenings and weekends" 12-month repeating tie-in (of dubious legality). Not a chance matey! Shocked
I was about to sign up to the £3/month off for 12 months offer. I'd have had no worries as I've been a customer for years. But now, given the growing BT influence and the apparently desperate tone of the new packages, I think I'll stick with what I've got for now. I've even been looking at what other providers are offering, for the first time in years.
Alex
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Re: Contract length, how long would you commit for?

Well said Laser, I don't understand the need for such lengthy contracts either.
Obviously we realise stuff like activation, admin, hardware and a cease have underlying costs, but I preferred the old method where you didn't have to pay unless you left before a year was up, and if you did, you did.
It has been said it was due to the introductory pricing, well why not have a monthly contract option without that (with all the deferred costs, as before). If that was true, then I see no reason why this cannot be offered, unless something more sinister is afoot.
Some people are happy with contracts, so be it. I see no reason to offer something to appeal to them with a financial incentive of course. However some don't, and I don't understand why they are now shut out.
If I had no option to take a contract for broadband I would have to, but as I do not, I won't. Just checked my current ISP and they still offer monthly contracts. As you say the "paying the ~£50 activation up-front and taking no hardware in exchange for a short contract term" is exactly what they offer, so as it stands I would still go elsewhere.
Sad really, because if someone asked me to recommend an ISP then I couldn't choose PlusNet anymore.
HPsauce
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Re: Contract length, how long would you commit for?

Quote from: Alex
Obviously we realise stuff like activation, admin, hardware and a cease have underlying costs,

The reality is that, as broadband becomes "the norm" these costs reduce quite significantly due to volume, automation, lack of idle (uncharged) time etc. etc.
I suspect that part of the problem is the balance of costs/charging between ISP's and BT is no longer realistic. In practice it probably costs BT almost nothing (and they could absorb it easily as there's no loss of line revenue) when someone does a MAC migration. If it's to/from LLU then there's a bit of extra work with tie pairs but otherwise it's trivial (or should be).
The_10th
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Registered: ‎08-04-2007

Re: Contract length, how long would you commit for?

Quote from: Laser
...BT have been trying similar tricks with the "free evenings and weekends" 12-month repeating tie-in (of dubious legality). Not a chance matey! Shocked
I was about to sign up to the £3/month off for 12 months offer. I'd have had no worries as I've been a customer for years. But now, given the growing BT influence and the apparently desperate tone of the new packages, I think I'll stick with what I've got for now. I've even been looking at what other providers are offering, for the first time in years.

I agree laser. BT (who is my voice supplier), trying to tie you down to rolling contract which for a couple of pounds a month isn't something I would entertain unless desperate. Then again, the money saved could be more of a loss if you 'have' to move before the year is up!
Like you, I thought about the £3 discount for a year but cancelled after this product launch such were my suspicions and upheld I believe. Been with Plusnet since 2002 and this, for me is the darkest hour, just hope the dawn is soon  Lips_are_sealed
Quote from: Alex
Well said Laser, ...
Sad really, because if someone asked me to recommend an ISP then I couldn't choose PlusNet anymore.

+1 - much sense to be sure and find myself not alone then.
Phil7979
Dabbler
Posts: 19
Registered: ‎10-02-2009

Re: Contract length, how long would you commit for?

I will never sign up to an ISP that has anything but a 1 month contract. I'm willing to pay any migration/connection fees the ISP incurs from BT Wholesale, either up front or deferred until I leave.
The way I look at it is I am paying my monthly fee to the ISP and therefore shouldn't be tied in if I haven't been given any hardware and the ISP has incurred no charges to have me as a customer. If they have no outlays to recoup then there should be no long contract.
I've only recently migrated in and am very happy with the service, but if the long contracts had been in place when I signed up I'd have looked elsewhere.
I've seen ISP's go bad too often to be not able to migrate somewhere else if and when I want.
Wheel_nut
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Registered: ‎03-08-2007

Re: Contract length, how long would you commit for?

The primary reason for locking customers into long contracts is the BALANCE SHEET.
When a customet is locked in for 18 months, the total revenue over the 19 months appears on the Balance sheet as money due to PlusNet.
Conversely. for those on monthly contracts only the proportion of the forward month's charge can be shown.
Obviously, the accountants and auditors see the the former scenario as a healthier Balance Sheet.
Now, I have no idea of why PlusNet may want to pad the Balance Sheet.
HPsauce
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Re: Contract length, how long would you commit for?

Quote from: Wheel_nut
Now, I have no idea of why PlusNet may want to pad the Balance Sheet.

It's been said before. Sale. Roll_eyes
Alex
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Registered: ‎05-04-2007

Re: Contract length, how long would you commit for?

Quote from: Wheel_nut
The primary reason for locking customers into long contracts is the BALANCE SHEET.

Agreed .. to me it sounds sinister (i.e. it's something BT senior management have inflicted).
It's taken a couple of years for them to wreck the business .. and what a surprise .. they are now doing so.
I wonder if we'll ever get an explanation as to why not having a long contract, for the new products, is necessary (rhetorical question).