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Price increase on the way?

Anonymous
Not applicable

Price increase on the way?

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?
68 REPLIES
grahamt
Rising Star
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Registered: 05-04-2008

Re: Price increase on the way?

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.
Fireant
Grafter
Posts: 159
Registered: 03-11-2012

Re: Price increase on the way?

shocked !!!!  line rental just greedy twats like  all the rest of so called isps .
Community Gaffer
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Re: Price increase on the way?

Let me follow this up and get back to you later.
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 Chris Parr
 Plusnet Staff
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Re: Price increase on the way?

Superuser
Superuser
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Registered: 05-11-2008

Re: Price increase on the way?

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
Mike
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Re: Price increase on the way?

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  ?
TORPC
Grafter
Posts: 5,163
Registered: 08-12-2013

Re: Price increase on the way?

Will people in contract, be affected by this & have their prices adjusted to suit
Or
Does the only affect new customers
Community Gaffer
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Re: Price increase on the way?

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.
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 Chris Parr
 Plusnet Staff
newagetraveller
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Re: Price increase on the way?

"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. Smiley
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Community Veteran
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Registered: 15-06-2007

Re: Price increase on the way?

Flaming optimist - you won't be
As my cheap deal runs out about then a call to COT would seem a good idea
dsw
Grafter
Posts: 127
Registered: 07-04-2012

Re: Price increase on the way?

Line rental is cheaper with the post office then at £10 a month.
Community Veteran
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Registered: 11-08-2007

Re: Price increase on the way?

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.
janitor
Grafter
Posts: 107
Registered: 11-08-2007

Re: Price increase on the way?

Yes but post office use talktalk  Cry, be afraid be very afraid.
Community Veteran
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Re: Price increase on the way?

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

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.
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