Annual increases - CPI+.....

[#1]

As my previous comments will show, I am more than pleased with the service provided by PlusNet. However..... does anyone wonder how (all) broadband providers cost their services. Like many others I have just had notification that my annual cost will increase by CPI + 3.9%. 

Where does this mysterious figure of 3.9% come from. It must be vital !! as most providers now use same figure.

In my case it is likely that my cost will alter to around £21.72.  To me the annual cost is still worthwhile but why the use of odd figures. Why not just round figures upwards to next full pound. If everyone thus paid an extra 50p or thereby it might slow down the necessity for annual increases.

As before I am more than satisfied with PlusNet, but this blanket CPI+3.9% seems a big hammer for a small nail..... 

[#2]

@forbes-38 This strange (to me, too) increase was originally decided upon by the financial wizards at BT HQ, and then 'adopted' by the majority of mainstream ISPs as a good way of increasing revenue without having to do anything else to justify it.

Not all ISPs have adopted it, but you have to get away from the 'big boys' to escape it.

[#3]

3.9% seems to be the "magic" number as my Vodafone mobile account is rising 4.5%, CPI + 3.9% apparently.

[#4]

Moderator's note(s):

Thread moved from Fibre Broadband to Plusnet Feedback.