Social Tariffs

[#1]

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@phatwa wrote:

So I am planning to stay for a while longer with Plusnet. I am on P.I.P and hope I will be eligible, for when the time comes.

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See my reply here regarding PIP, if/when Plusnet do offer a social tariff I would expect them to have the same eligibility criteria as BT.

[#2]

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@Townman wrote:

There is nothing therein stating that a CP/ISP MUST do this, Ofcom are suggesting that they SHOULD do this.

They are not the same.

... this can only lead to higher prices for other users. 😠

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Hopefully it will not do so and will only mean a very small reduction in the dividends that are being paid to the shareholders.

[#3]

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@Townman wrote:

... this can only lead to higher prices for other users. 😠

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I expect CPI+3.9% will do that to a much larger extent won't it?

[#4]

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@sandrataylor51 wrote:

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Hopefully it will not do so and will only mean a very small reduction in the dividends that are being paid to the shareholders.

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Ah you'd have the old age pensioners pay for it then?  The vast portion of corporate share holders are pension fund investments.

[#5]

I wish I understood the problem here. The BT group offer a social tariff to which Plusnet customers can move free of charge. Why does it matter whether it’s labelled Plusnet or BT? Where’s the sense in Plusnet setting up a parallel service, probably at the same price?

As for paying for it out of reduced profits rather than it affecting the price the rest of us pays…..

[#6]

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@Townman wrote:

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@sandrataylor51 wrote:

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Hopefully it will not do so and will only mean a very small reduction in the dividends that are being paid to the shareholders.

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Ah you'd have the old age pensioners pay for it then?  The vast portion of corporate share holders are pension fund investments.

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The miniscule reduction in dividends would not affect any pension funds in a significant way.

[#7]

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@Baldrick1 wrote:

I wish I understood the problem here. The BT group offer a social tariff to which Plusnet customers can move free of charge. Why does it matter whether it’s labelled Plusnet or BT? Where’s the sense in Plusnet setting up a parallel service, probably at the same price?

As for paying for it out of reduced profits rather than it affecting the price the rest of us pays…..

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Having been a loyal and, until last year, a happy customer of PlusNet for many years, I would rathe have stayed with them but I cannot afford to stay with them when I can get almost 3x my current speed for half of the price, so I am having to move.

[#8]

@sandrataylor51 

I understand that but similarly I moved my house insurance this year from the company I had loyally used for years. I was very happy with them but the difference in price for the same cover with another company was half. It's the way of the world I'm afraid.

[#9]

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@Baldrick1 wrote:

 Why does it matter whether it’s labelled Plusnet or BT?

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To a lot of people it won't matter, but it does seem strange that the BT Group's low-end ISP (Plusnet) doesn't have a social tariff, while the top-end  (BT) does.

So:

• Plusnet will offer basic budget broadband services
• EE will offer a more comprehensive mid-market service
• BT will offer small business broadband, corporate solutions, and a social tariff for people on benefits. 

It doesn't seem quite right to me.

Edit: when people on the social tariff are no longer eligible for it, will they have to move back to Plusnet or EE?

[#10]

I think that you are confusing the current BT product offerings with their future plans.

[#11]

No, I was talking about the future plans - what the various ISP brands will offer.

[#12]

@corringham 

Currently BT are selling residential broadband as well as offering a social tariff. When BT finally decide to stop selling this product and transfer existing customers to EE by means we are yet to learn, it’s a bold assumption that the social tariff will stay as is.

We only know the current outline plan, currently the only changes that I am aware of is transferring customers to ‘digital phone’.

[#13]

@Baldrick1, you are of course correct that we don't know what the final products for each brand will be.

However, given that the social tariff is a new offering that has only recently been introduced surely it would make more sense for the intended low-cost brand to offer it rather than the top end brand.

EE does offer a social tariff for mobile contracts, but not for fixed line broadband. I would have expected BT to be the only brand where a social tariff is not appropriate (targeting small business and corporate) yet it is the only brand that does offer it. Crazy!

[#14]

@corringham That's BT corporate thinking for you.😀

[#15]

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@corringham wrote:

... However, given that the social tariff is a new offering that has only recently been introduced....

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Tempus Fugit.

BT Basic offered phone and ADSL broadband for those on benefits at cost. I believe that it was launched about 15 years ago

This was upgraded to fibre and renamed BT essentials. This was first offered it in June 2021, it is now 2023.

I'll admit that it's only come to prominence recently but social tariffs have been available for many years..