Plusnet End Fixed Price Broadband Contracts

[#1]

You may not be aware that as of 7 October 2020, Plusnet appear no longer to offer fixed price contracts. Any contracts entered into from that date will automatically rise by CPI +3.9% on 1 June 2021and on 1 March thereafter. See this link:

https://www.plus.net/help/legal/cpi-plus-guide/

Seems like a BT initiative.

I only discovered this because Plusnet are currently trying to sort out the chaotic billing on my account and as part of that they are starting a new contract to run for the remaining term of my existing one (which they are cancelling) and the new terms were sent to me. Needless to say that will not be acceptable for this "replacement" contract which is only needed because of Plusnet's incompetence.

[#2]

Hi @jgb 

My interpretation is that all rises will be actual CPI and that 3.9% is just an example.

Dave

[#3]

Hi @daveplus 

The wording is "CPI plus 3.9%" and so I think it is just that - a minimum of 3.9% if CPI is zero or negative, otherwise more.

This is the same increase formula as BT (Plusnet's parent company) use and they give specific examples of exactly how it will work and they match my interpretation. The examples at the bottom of the page I linked to also support my interpretation.

CPI would seem reasonable but the added 3.9% is just pure greed and facilitates the low initial cost of the contract. You get especially caned if you take a contract out just before the increase dates getting little benefit from the initial cost.

[#4]

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@jgb wrote:

The examples at the bottom of the page I linked to also support my interpretation.

CPI would seem reasonable but the added 3.9% is just pure greed...

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I agree.

One of the examples:

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Unlimited Fibre Broadband £17.01 per month plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

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Seems pretty unambiguous!  😥

[#5]

@jgb 

So sorry: you are right.

Dave

[#6]

With people losing their jobs left, right, and centre I don;t think this is a particularly clever move.  BT are all but a monopoly supplier so costs will rise for their benefit generally.

[#7]

Agreed but  many of their competitors also have price rises built into contracts. It just means you have to work out, to your best estimate (say +5% at present), what the cost will be when they increase the price during your contract and factor that into your decision as to whether to proceed or not. I have also noted that they seem to be pushing 12 month contracts at the moment at their best prices so that means that aligning LRS is simpler (assuming that the concept of LRS continues as there was some hint that they would cease to offer those in the future).

[#8]

There seems to be something less than clear happening in the wholesale market.  A number is the RETAIL ISPs have heralded the 3.9% base price increase as to facilitate "investment in the network..." which clearly they do not invest in DIRECTLY for that is the responsibility of BT Openreach / Networks.

I note however that not all ISPs have yet announced a similar price increase ... so one does wonder if its just BT Retail Division's (BT Retail, EE and Plusnet) customers who are bearing the brunt of the upgrading the network used by Sky, Talk Talk and the over BT Wholesale ISPs?

In the case of Plusnet, the pill would not be quite so bitter, if Plusnet users could get the FTTP services these price increases are claimed to be supporting!

[#9]

See https://www.yourmoney.com/household-bills/bt-ee-and-plusnet-customers-face-steeper-price-hikes-next-...

A BT spokesperson, said: “While we recognise that no one likes to see their prices go up, with the major growth in data usage seen recently, both at home and on the move, we want to continue to invest heavily in our networks, products and services, simplify our packages and policies, and offer greater support and flexibility to those who need it the most.

That rather reads as though BT Retail are setting the prices and pricing strategy for quasi-independent businesses - I rather thought that market price fixing (creating a price cartel) was illegal?  I note particularly the reference to "invest heavily in our networks" which one presumes refers to the BT infrastructure commitment to roll out FTTP to 20 million homes in the next 5+ years - https://www.ispreview.co.uk/index.php/2020/05/bt-invest-12bn-on-fttp-broadband-for-20-million-uk-pre...

It seems inappropriate that Plusnet "That'll do" grade users should be expected to fork out for Uncle BT's grand plans to roll out services (FTTP) which are not available to those funding the investment.  One can only hope that there is substance in the suggestions that BT is indeed ripe for a take over and a long over due restructure of the divisions - see https://www.yourmoney.com/investing/could-bt-be-taken-over/

[#10]

I agree with "Townman"

This policy is hard to understand in the current climate.

It was only mid 2018 when PN were advertising guaranteed fixed price contracts as the "new norm" https://www.techradar.com/uk/broadband/want-a-guaranteed-fixed-price-on-your-broadband-deal-plusnet-...

With the CPI  at the lowest rate it's been this century, how on earth do any of the suppliers justify these 3.9% minimum guaranteed increases to OFCOM or anybody else?

[#11]

Investment in the network is all very well but some nice new wires between cabinet and premises would be worth paying for. I presume though that these would all now be FTTP.  We have the old Nynex cables in our road for Virgin but few people use them because they are too expensive compared with other providers.

If you really do want a fixed price contract Sky are offering a fixed 18 month deal with all free phone calls too. Maybe they have more money than BT!

[#12]

I'm on a fixed price contract and when it ends does this mean if I stay with Plusnet my price will go up by CPI and 3.9%?

Why 3.9 on top is just the CPI increase not sufficient?

Don't get me wrong I don't mind paying premium prices if the service is premium but Plusnet isn't.

I was with BE before they sold to O2 and I paid them a premium price without a second thought as their service was top notch.

With the issues Plusnet has, I very much doubt they will be able to hold on the existing customers unless the retention team discount the products by x% of the increase to balance it out.

Not a business advisor or anything but if Plusnet are following BT price increase stucture why doesn't plus net just merge with BT instead of being owned by BT and running as a separate entity.

Since the last CEO left standards have dropped.

[#13]

The standards had slid long before the CEO left. He came out of the BT management stable ...

You are not wrong, BT is setting the pricing model, I believe to pay for the roll out of FTTP which at present is not available from Plusnet.

As for total merger - no thank you - I do not want even poorer support from the Indian subcontinent - a geography were personal data loss is rife.

[#14]

CPI + 1% is fair but they need to keep the shareholders happy.

If it's done to improve the infrastructure then Plusnet need to get onto the FTTP bandwagon.

Don't think Plusnet will equipped to deal with FTTP TBH since they appear not to be able to get their house in order at present.

[#15]

You can't make a silk purse out of a sow's ear and PN can only supplty FTTP if the cabling is in place. I am disappointed with my own FTTC as I was unaware that the cabinet was over half a mile away. It is all a bit of a lottery. My son can get 60Mbs but my sister is even worse off than I am with a potential FTTC speed of 10Mbs, only just reaching the USO figure.