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    • 1 Post By lettice

    Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

    This is a discussion on Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone within the Entertainment forums, part of the Community channel category; Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone - ISPreview UK Cable operator Virgin Media has ...

    1. #1
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      Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone - ISPreview UK
      Cable operator Virgin Media has today taken the surprise decision to introduce a new range of broadband products with 1 month rolling contracts, which includes standalone services as well as their various other service bundles with phone and TV etc.

      Most of the markets largest broadband ISPs have tended to swing between 12 and 18 month terms, although some like TalkTalk and Plusnet have started to give subscribers the option of different contract lengths. However it should be said that shorter terms are fairly common at the other end of the market, where smaller and often higher quality providers like to play.

      In that sense Virgin Mediaís change is perhaps a reflection of their latest adaptation to an ever changing environment and one that, they will hope, might help to attract some extra subscribers. The caveat with shorter contracts is that related packages tend to be more expensive because providers have less financial certainty and thatís true here too, as our example below shows.

      Example of the Price Different (Contract Length)

      SuperFibre 50 broadband (50Mbps) Ė 12 Month Term

      Price: £32.25 a month for 12 months + £14.99 one-off activation fee

      SuperFibre 50 broadband (50Mbps) Ė 1 Month Term

      Price: £32.25 a month + £59.99 one-off activation fee

      SuperFibre 50 broadband and phone Ė 12 Month Term

      Price: £32 a month for 12 months (£40 thereafter) + £14.99 one-off activation fee

      SuperFibre 50 broadband and phone Ė 1 Month Term

      Price: £40 a month + £59.99 one-off activation fee
      Interestingly the only difference between the 12 and 1 month term on Virgin Mediaís standalone (solus) 50Mbps package is in their higher setup fee (£14.99 vs £59.99), while the monthly price is identical and that in our view makes it quite attractive. Meanwhile the broadband and phone bundle shares the same difference, although you also lose their current discount for the first 12 months of service (£32 vs £40 per month).

      Naturally itís a similar story for Virgin Mediaís faster packages and bundles. The big advantage of a monthly contract is that if you donít like what youíve been given then itís fairly painless to leave, which might encourage more people to take the plunge and give the cable giant a try. No doubt thatís precisely what any operator, especially one in the throes of a major network expansion, would wish to see.


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    3. #2
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      Re: Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      In this scenario. Is that £59.99 applicable everytime you start a month of broadband.
      Say you start the service for 1 month it will be £32.25 a month + £59.99 one-off activation fee.
      Then during that month you cancel.
      Six months down the line you take it again an a month deal, is the £59.99 one-off activation fee still applicable?
      Last edited by lettice; 01-03-17 at 10:19 AM.

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      Re: Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      I suspect that the answer is yes.

      I believe that this deal would be more suitable for someone who is having to move on a short term basis to a temporary place or University students.

      For anyone else it's perhaps useful to know that they can sign up for a short contract of they want to.

      Sky are currently offering 18 month contracts. This is something I'm not keen on. 12 month contracts was always better, but the retention figures for Sky are poor.

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    5. #4
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      Re: Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      I just asked that on Virgin live Chat. The £59.99 fee is due everytime you restart.
      You do have to give them 30 days notice to cancel and can do that from day2.
      You can switch between the 1 month deal options at any time.

      That makes it a very expensive option. You might as well just go for a 12 month deal, and not use it for some part of the year.

      Not ever had a sky contract longer than 12 months, but I always make sure. Was lucky enough to get my sky q install done in that 12 month contract window before it went back to 18 months, but see some are getting 12 months contracts again now.
      See though the latest sky existing customer offers doing the rounds is sky are extending your current discounts for 18 months, but still only extending you on a 12 month deal.
      That's what I have been offered for my renewals in a few months.
      Expect this is taking it up to the loyalty program that may be announced later this year.

      Edit: Mixed up an 18 and 12
      Last edited by lettice; 02-03-17 at 05:57 AM.

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      Re: Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      Regarding loyalty discounts, I've just taken out a 12 month contract with Virgin that includes an 18 month loyalty discount of £10/Mth. It maybe that Sky is introducing them so as to reduce churn where there is competition from VM.

      I do have Sky TV but this worked out cheaper than a full price Multiscreen subscription for a 2nd TV.

      The other reason that VM can offer one month contracts is that they are not subject to the high one off charges levied by Openreach to communication providers for setting up telephone and broadband services.

    7. #6
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      Re: Virgin Media UK Adopts 1 Month Contracts for Broadband, TV and Phone

      Sky have done semi loyalty discounts for a long time, whenever you renew each year they always mention you have been a customer for 10+ years etc.
      The one I've been promised did mention being a long term customer also and extending your current deals, that being the tv package half price one I've had for five years.
      Line rental half price was offered last year and free sky go extra the year before that and of course for a number of years before that the Beckham deal of free broadband but also got line rental discounts at differing rates before that.
      Did come across someone mid Feb when I was helping them with a move to sky q (they need an ethernet setup, split house). They were paying full price and had been paying that for well over ten years, not ever contacting sky at renewal. I told them to ring and ask for a deal on their TV package when they ordered sky q, they were offered three years at half price off tv and free fibre unlimited broadband for 18 months.
      seawright likes this.

     

     

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