PlusNet marketing has totally lost the plot!

[#1]

£13 yeah, but look at the price of the broadband/fibre packages - much higher.

[#2]

The point is Plusnet are making a lot of profit on the line rentals to cross subsidise the broadband.
Plusnet also charge way over the odds for calls. Pulse8 can make a profit charging 1p per minute (Plusnet 10p), per second billing (Plusnet round up to a minute) and no connection charge (Plusnet charge 16p per call)

[#3]

Unless on a package deal, Plusnet users who make a modest or low amount of calls could save money by switching line rental to Pulse8 even allowing for the £2.50 levy Plusnet charge for not having their line rental with them. Also Pulse8 is one month contract so moving on in the event of issues would not be a problem.

[#4]

Comparing phone packages is interesting, but misses the point that many users (my self included) make very few chargeable calls, therefore there is no call revenue to prop up broadband costs.
If there is no distinct revenue from UNLIMITED broadband how the hell is the backbone capacity / utilisation to be funded?  The marketing ploy is commercial stupidity.  No one can keep giving stuff for free and maintain good service.  If you look with openness at the market place the going rate (including Plus8) for a phone / broadband package is circa £25pcm.

[#5]

Quote from: Oldjim

as a comparison https://www.uno.net.uk/packages/phone-line-rental/  https://pulse8broadband.co.uk/line-rental

It appears to me that UNO prices are + VAT so probably £11.99/month with VAT
For further comparison: http://www.vivaciti.net/#phone

Of course, if a new customer doesn't take line rental they can't get the free broadband offer at all - not just a +£2.50/month penalty.

[#6]

Quote from: Townman

Comparing phone packages is interesting, but misses the point that many users (my self included) make very few chargeable calls, therefore there is no call revenue to prop up broadband costs. If there is no distinct revenue from UNLIMITED broadband how the hell is the backbone capacity / utilisation to be funded?  The marketing ploy is commercial stupidity.  No one can keep giving stuff for free and maintain good service.  If you look with openness at the market place the going rate (including Plus8) for a phone / broadband package is circa £25pcm.

Plusnet are making about £7.50 per month profit on just the line rental.

[#7]

Unfortunately most people want broadband at the lowest possible price regardless of the consequences.
The major ISPs are committed to feeding that desire by market forces

[#8]

They also look at the headline price only.
If an ISP advertised FREE Unlimited 80/20 fibre with £100 cashback (plus £75 per month line rental) some idiots would buy it!