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Usage rollover, makes sense?

christmas
Grafter
Posts: 234
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Registered: 16-01-2011

Usage rollover, makes sense?

Most broadband contracts are initially for 12 or 18 months ie the customer is tied in or faces a financial penalty.
How about rolling over any un used monthly usage rather than being returned to ground zero each month?
If the companies can enforce 12 to 18 month contracts, how about similar arragement for customers?
What happens to the unused daily usage does it get re-cycled, dumped at sea or get stored in a cupboard for later use?
17 REPLIES
Superuser
Superuser
Posts: 9,450
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Registered: 06-04-2007

Re: Usage rollover, makes sense?

I expect the proportion of extra usage that is actually used is averaged out and used in the pricing calculations. Paying a bit more for the Unlimited product is surely better value these days.
David
Community Veteran
Posts: 3,380
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Registered: 18-01-2013

Re: Usage rollover, makes sense?

As above - Plusnet pay BT per GB of traffic usage so they'll have based their business model and pricing on customers on capped products using x% of their total allowance.
Community Veteran
Posts: 19,100
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Registered: 31-08-2007

Re: Usage rollover, makes sense?

The question of "rolling over" unused usage has been raised several times before. The above responses cover that point.
You don't have to sign up to a 12 month Contract for ADSL, but you will have to have an 18 month contract for Fibre because of the installation costs involved.
Community Veteran
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Registered: 08-10-2010

Re: Usage rollover, makes sense?

Quote from: Anotherone

You don't have to sign up to a 12 month Contract for ADSL, but you will have to have an 18 month contract for Fibre because of the installation costs involved.


I wonder why when you 'continue' or change your price plan you have to get tied in to a contract - the initial cost, which as you say is recovered by the contract, has already been recovered. Huh
Ps, sorry my comment is in the quote box, but for some reason I can't get it out of here.
Dick:green Quote fixed.
Community Veteran
Posts: 19,100
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Registered: 31-08-2007

Re: Usage rollover, makes sense?

If you sign upto a 12 or 18 month contract initially, when that term expires you are then on a 30 day notice. If you change ADSL product there is no new contract UNLESS it's a special offer AFAIK. I'm sure someone will put me right if that's changed. However if you move from ADSL to Fibre that is a new 18 month contract at this time because of the installation costs of Fibre.
Community Veteran
Posts: 19,100
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Registered: 31-08-2007

Re: Usage rollover, makes sense?

Hmm, although this is going a bit off-topic as the OP was primarily about usage, I've been doing some further digging in relation to Fibre. It's not clear that if your have reached the end of the Term on Plusnet Value or Extra Fibre, if you are expected to agreed to a further 18 months is you moved to Plusnet Essentials or Unlimited Fibre without any special offers. That to me would seem somewhat unreasonable.
Clarification please Plusnet!
rja66
Rising Star
Posts: 401
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Registered: 31-07-2007

Re: Usage rollover, makes sense?

I have always chosen the 'no contract' option on my ADSL connection (I seem to recall paying extra for this when I signed up back in 2004) however I was told when I recently switched to unlimited I would now be on a 12 month contract unless I paid an additional £2 (I think it was Undecided) to retain the 30 day notice option. As a loyal customer it would have been nice to have been allowed to keep the 30 day notice option for the £9.99 price.
* Just to add: I chose the 12mth contract in the end to keep the price down and decided I may as well have the free router as well as I was already tied for a year and as this router solved many problems for me I cannot complain !   Cheesy
Community Veteran
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Registered: 08-10-2010

Re: Usage rollover, makes sense?

@ RJA66..
I'm on extra (still), and if I go to unlimited, will I be on a 30 day contract or tied in for another year?
If I am tied in - WHY?  There is no hardware to pay for.
That was the point I was trying to make, off topic I know. Sorry.  Shocked
Community Veteran
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Registered: 15-06-2007

Re: Usage rollover, makes sense?

It depends if you go for the lower price 12 month tie in or I think £2.50 more with no tie in
x47c
Grafter
Posts: 878
Registered: 14-08-2009

Re: Usage rollover, makes sense?

It will be something to do with ensuring they have at least some degree of certainty about the income received during the next year.
This means they can work out their allocation of working capital and expected cash flows with more accuracy.
They don't want a scenario where customers could come and go as they please (quite apart from the paperwork aggro/cost this would be) so they make it more expensive for those who do wish to have that option on ADSL.
Perhaps on Fibre they really really really don't want you to leave for some operational/capital expenditure reason to do with FTTC so they enforce a longer contract..........
Perhaps they have longer term contracts for the "FTTC links/ports" with BTworldwide so need to pass that on.
Who knows!
Community Veteran
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Registered: 31-08-2007

Re: Usage rollover, makes sense?

@doris barloff
Jim is right there when moving to a new ADSL product at the lower price, it's a 12 month contract, having looked at the small print Lips are sealed
christmas
Grafter
Posts: 234
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Registered: 16-01-2011

Re: Usage rollover, makes sense?

Re rollover of usage are people saying if everyone on limited allowance used it to the maximum PlusNet would lose money, or just that they'd make less profit?
Re the subject of contracts...I'm unclear what happens at the end of 12 or 18 months. Does it autonatically roll on to another 12 or 18 months contract?
Community Veteran
Posts: 38,460
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Registered: 15-06-2007

Re: Usage rollover, makes sense?

It changes to the usual 10 30 day notice unless you sign up for another 12 months. But then again they would have to make that very attractive as you would stay on your present 12 month contract price but with 10 days notice
Edit - error corrected
Community Veteran
Posts: 19,100
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Registered: 31-08-2007

Re: Usage rollover, makes sense?

No, as Jim has said, you are on 10 30 day notice  - automatic contract rollovers were banned by OFCOM over a year ago, about the only decent thing they've done for users.
As was said in an earlier post, the allowances topic is all related to the business model. Without checking further (which I'm not going to waste time on) if it came up before, but it certainly did in 2006 and again in 2010 with posts on that continuing until 2012. They haven't changed their model since then and I doubt with Unlimited packages (and increased allowances on some others) becoming more common place, that they are very unlikely to do so now. Flogging that issue is like flogging a dead horse IMHO.