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    • 1 Post By James_Mitchell

    Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

    This is a discussion on Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed within the General Computing and Internet forums, part of the Community channel category; Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed - ISPreview UK A new study claims that broadband and ...

    1. #1
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      Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed - ISPreview UK
      A new study claims that broadband and home phone prices for “loyal customers” (i.e. those who prefer to stay with the same ISP rather than switch) have increased by an inflation-busting 40% since 2011 and are thus paying on average £8.59 a month (£103 a year) more now than they were four years ago.
      The uSwitch study, which is partly based off a nationally representative June 2015 ‘Opinium’ survey of 2,000 broadband users, notes that 30% of people have never switched provider and so would fall into the above group.

      The same survey also found that 44% people are unsure when their broadband contracts end, which could be solved if ISPs were required to actively notify subscribers about such events. Apparently 60% of consumers would support such a feature, although a similar proportion suggests they would be more likely to switch ISP after receiving a reminder (this is one reason why ISPs are so reluctant to do it).

      NOTE: We take the following price comparison table with a big pinch of salt as some of the costs don’t seem correct. For example, the non-offer SimplyBroadband (TalkTalk) price today is £7.50 (broadband) + £17.70 line rental, which makes for a total of £25.2 per month and not £30.99 as listed below. It’s also unclear which packages are being compared and what other discounts or costs have been factored (activation? install? etc.), although some ISPs like BT do hike their prices sharply at the end of a contract.

      Non-fibre broadband deals (including line rental)

      Provider
      Average monthly cost following contract end (2015)
      Average monthly cost following contract end (2011)
      £25.20
      £20.30
      £27.40
      £22.25
      £30.99
      £27.90
      £26.39
      £17.75
      £26.98
      £18.48
      Average
      £27.39
      £21.33

      Fibre broadband deals (including line rental)

      Provider
      Average monthly cost following contract end (2015)
      Average monthly cost following contract end (2011)
      BT
      £42.99
      £31.90
      £37.40
      N/A
      £34.49
      £27.40
      TalkTalk
      £35.20
      N/A
      £31.98
      N/A
      £36.35
      N/A
      Average
      £36.40
      £29.65

      Obviously it goes without saying that the best deals can usually be had by switching providers at the end of a contract, which is now a lot easier thanks to Ofcom’s new harmonised switching system (here). However uSwitch fails to reflect that sometimes switching providers can also attract additional costs, such as exit fees or new activation / installation charges (monthly rental is only part of the overall picture).

      Similarly Ofcom’s new switching system only works on Openreach and KC’s telecoms platform, which means that swapping to Virgin Media’s independent cable network or other non-Openreach based broadband and phone services can sometimes result in additional installation complications or longer downtime.

      On top of that the consumer experience will vary between ISPs, with some providers making more modest changes to pricing than others. Meanwhile a lot of ISPs prefer to mask their prices by lumping them all onto line rental, although 2015 has already seen both broadband and phone prices rising more sharply than we’ve seen in previous years (e.g. TalkTalk’s sharp price hikes).

      In fact the situation has grown to become such an issue that even the national telecoms regulator, Ofcom, recently raised concern (here).

      Sharon White, CEO of Ofcom, said:

      There are signs in recent months of rising prices for landline and broadband customers, without the apparent justification of higher costs or improved service. BT, Sky, TalkTalk and Virgin Media have all raised line rental prices this year.

      This might be a temporary blip in the market, and there are still good offers out there for people who shop around. But customers who worry about the hassle of leaving their current provider, especially older people, can face higher bills. We are concerned about this, and we are watching these developments in the market closely
      .”
      Mind you such price hikes have become a regular occurrence and so quite why Ofcom are now taking such notice is difficult to know, although certainly a few ISPs have made some fairly big changes in 2015 and that’s perhaps helped to prompt their interest.

      Whether or not Ofcom can actually do anything about this is another matter entirely, but their on-going Strategic Review might well propose some partial solutions. Equally we shouldn’t forget that service quality is another important metric that needs to be considered (the less you pay, the less you get).


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    3. #2
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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      I think i already know sky have put up the tv packages a month or so ago and now they are hitting us again with the phone packages being put up in december i have had the evening and weekend package for about 7yrs and now they want to charge me £4 a month for it not that i even use it very much the odd call use my Mobile most of the time.
      Wish we could do away with the phone line but you are stuck because you have to have it because of the broadband.
      The worst thing is we can't even swap to another provider because we don't have virgin cable here or i don't have a strong tv aerial signal so can't change.


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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      Certainly Sky has increased their TV subscription fees. This was done a few months ago now. This article is specifically about the increases that have been applied to telephone charges.

      Sky is guilty in this area. The restructuring of their call packages and the phasing out of the legacy packages will affect most of their customer base. Most people are facing a £5 per month or £60 per year increase.

      In Sky's case, adding the mobile phone calls within the main Sky Talk Anytime product is a good move IMHO. It will encourage people to think again for both our landline and mobile phone call packages. Sometimes speaking on a mobile phone can be difficult due to the signal at either end. A landline should always be clear. Of course individual handsets can affect how good a landline actually is.

      However the article doesn't just have a go at Sky. It points to all the main providers and show that none have a good history over the past four years.

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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      People should sit down and think about their call packages though and if they do actually need their included allowances that they are paying for.

      For example, looking at my last bill with Sky (on the Sky Talk Anytime £5 package here), I spent £2.92 on calls to mobiles (which is more than usual for me actually). When I get switched to the new £8 package, whilst mobiles would then be included, it would still be costing me (slightly) more at an extra £3 every month to include those mobile calls.

      It's the same with mobile phone allowances. People often think they need (and pay for) all their allowances, but in many cases they actually don't need them and they end up paying for allowances they are not using.

      Package allowances often give people a unnecessary sense of security, which communication companies take advantage of.
      Scubbie likes this.

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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      This is why i bought the Ligo, linked it to my mobile & to the wifes'. We both have a thousand minutes a month we never use so it's just a case of pre-fixing the calls with either 1R or 2R when picking up one of the dect phones.

      For some reason it's easier to pick up the dect phone than a mobile.... strange but I'm sure that a psychologist would make something of it.
      Last edited by marjohn56; 28-10-15 at 07:37 PM.
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    9. #6
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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      my mobile is nearly always better quality than my landline, in fact my landline at the moment has nasty crackling but I am not reporting it it as I dont want to mess up the broadband (its only used for inbound calls or calling sky).
      Another reason I use my mobile is that funny enough it is much cheaper, sub £15 month for 1000 mins to any uk number mobile or landline. Inclusive caller display, waiting, voice messages etc. also no connection fee's for calls.
      In the uk the landline providers have lost it, they are more expensive than mobiles now.

      Then of course not to mention i can use my mobile anywhere, whilst my landline is limited to my house.

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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      You should contact the Pro team. The crackling might be an indication that there is a problem with your line. Fixing it may save your connection stats.

      As for mobiles being cheaper, it depends on which part you look at and how you pay for it.

      Sure mobile broadband can be used anywhere. I took my MiFi with me on holiday to Spain recently so very much appreciated that. However for £46.40 (soon to be £47.40) you get unlimited bandwidth on you SFUP connection at up to 80mb down & 20mb up. My MiFi comes no where near that, and that only allows for data.

      Most providers have now locked down the phones of subscribers to stop them from sharing their unlimited data plans with laptops or tablets. This means that many will need two devices if they want some kind of mobile Internet that can be used on a separate device.

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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      Not an actual analysis but my feeling on anecdotal evidence.

      Most people on the older Anytime package are saving money with getting 0845 and UK mobiles included. Most of these customers haven't looked at their actual call usage in more than 3 years.

      Many people on Anytime UK package are saving money with the inclusive mobile calls compared with recent bills.

      Around 40,000 customers on the older Anytime package will be disadvantaged by the move to Anytime Extra. So to combat this, selected customers will be offered Anytime Extra International for £8 instead of £12 for 2 years.

      Most people on either old package wiil save more by going to Anytime Extra If they make mobile calls from their landline.

      Almost 75% of people (I feel) on Freetime or Weekend calls don't make landline calls so they are avoiding most of the increase by switching to Pay As You Talk calls.

      Hope this helps with some context.

    12. #9
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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      Quote Originally Posted by Scubbie View Post
      You should contact the Pro team. The crackling might be an indication that there is a problem with your line. Fixing it may save your connection stats.

      As for mobiles being cheaper, it depends on which part you look at and how you pay for it.

      Sure mobile broadband can be used anywhere. I took my MiFi with me on holiday to Spain recently so very much appreciated that. However for £46.40 (soon to be £47.40) you get unlimited bandwidth on you SFUP connection at up to 80mb down & 20mb up. My MiFi comes no where near that, and that only allows for data.

      Most providers have now locked down the phones of subscribers to stop them from sharing their unlimited data plans with laptops or tablets. This means that many will need two devices if they want some kind of mobile Internet that can be used on a separate device.
      No I shouldnt because the only reason I have the landline is for broadband, I dont care about voice. That is the same for millions of people, they only have a voice service as its required for broadband.

      Those people who think they saving money by using a landline instead of a mobile are behind the times.

      e.g. a PAYG landline one has to pay line rental and call connection fees.
      PAYG mobile no connection fees and no line rental.

      Inclusive call landline packages have silly things like 60mins per call limits and tend to cost more than mobile contract packages.

      e.g. My PAYT sky talk package costs more than my entire mobile package LOL. (note on my mobile package I am removing the premium added for the phone, so as if its a sim only deal).

      Mobiles are typically way more reliable also, I think over the years I have owned mobile phones I have never ever had no service at home. Yet I have had multiple voice land line outages.

      Knowing how bad openreach are, it would be a lottery of my broadband been negatively affected by a voice service fix. e.g. if they do a pair swap to fix the voice then I may end up on a pair with more crosstalk on the BB. So no thanks unless my BB gets affected I wont be reporting it.

      It used to be a different balance as 0800 used to not be free on mobiles (now it is) and 0845 was way more common before ofcom stepped in.

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      Re: Study Claims UK Phone and Broadband ISP Prices Have Sky-rocketed

      @chrcol
      Have to agree, having just now changed to the sky payt as I do not use the landline (from freetime) with line rental of £8.
      I use vodafone payg 4k and for only a tenner a month I have unused minutes that transfer to next month and have a good £190 currently to use on there as I wish, good when you have the odd longer call.
      Now mobiles have 0800, any calling utility/insurance companies once or a few times a year is now free. Was one of the last bastions for using a landline.
      Have a few gb a month and unlimited texts (do not really use much texting) and 250 mins a month (plenty for calls)
      Use the mobile on wifi (when out and about) many times a day for contact using messaging/skype/email, making mobile calling use often not necessary or much less.
      I have always bought my mobile outright and unlocked and keep for a few years, but use it as a smartphone/tablet on the road and at home so I just write of that expense.

      For me that 40% is completely opposite as my broadband and line rental has gone down over the last decade thanks to sky deals, free broadband free for 2nd year and reduced the previous few back in 2010-2013 and with line rental now half price.
      Saying that I'm not using a landline call package, but thats not a competitive or good option anymore, its a legacy product in my view.
      As for these compare companies like uswitch, articles like these are good publicity for them. Just visited and it gave me a ridiculous inflated price, which is not a loyal negotiated customer price. Best to work out and negotiate the deals yourself in my view, its not hard.
      Last edited by lettice; 29-10-15 at 01:16 PM.

     

     

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