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Re: Changes to Virgin TV (2022)
Quote:
Originally Posted by Media Boy UK
I only said "may" due to this part:
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From the article
Quote:
For example, the latest CPI rate is 10.7% and RPI is 14%, thus an operator that chooses to increase its prices by RPI + 3.9% today would be raising them by an average of 17.9%! But it’s worth noting how most broadband providers that adopt this approach use CPI and not RPI (i.e. using RPI on broadband is not a good look).
By comparison, Virgin Media has tended to buck this trend on their fixed line base and, as a result, last year’s annual increase was distinctly less aggressive than some of their closest rivals (here). But it should be said that their mobile customers already suffer from the RPI + 3.9% method (here). However, normally credible sources have now informed us that this may change in 2024.
Assuming the ISP follows the same trend in 2023 as they did in 2022, then we expect their usual round of annual price hikes to be announced in January or February 2023. But this may also give notice of their FUTURE intention to update the terms of their packages to adopt the RPI + 3.9% approach for their broadband base.
The change, which could then become effective for all customers on 1st May 2023, would mean that the price hikes introduced from 1st April 2024 (i.e. the following year) would be based off the RPI rate published in February 2024, plus 3.9% on top. The good news is that we’re expecting inflation to fall significantly by February 2024, although there’s still a high level of uncertainty over those forecasts.
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