Virgin Media price rises break the law

[Inactive Digital]

Originally Posted by Gavin-D

Ofcom has announced that Phone, TV and broadband customers must be told about mid-contract price rises at the point of sale and "in pounds and pence" and not based on inflation.

It's at consultation stage, and I'm sure the telcos will robustly defend maintaining the status quo.
Personally, I'd welcome this change (second to no mid-term rises allowed at all).

Originally Posted by Inactive Digital

It's at consultation stage, and I'm sure the telcos will robustly defend maintaining the status quo.
Personally, I'd welcome this change (second to no mid-term rises allowed at all).

They’ll squeal alright - quoting in percentages has allowed them to get away with inflation PLUS another 3 or 4% every year without anyone seriously questioning it (3 or 4% sounds like a very tiny amount, certainly less than the £1 or £2 a month it might actually be). It also puts all the future financial risk on the customer. An equitable fixed term contract ought to share the risk (the customer is tied in but the supplier is committed to the price). So they won’t want to see the end of that.

However, Ofcom’s statement this morning is unequivocal. If they had meant to leave room to back down they would have done so.

[Inactive Digital]

Originally Posted by Chris

They’ll squeal alright - quoting in percentages has allowed them to get away with inflation PLUS another 3 or 4% every year without anyone seriously questioning it (3 or 4% sounds like a very tiny amount, certainly less than the £1 or £2 a month it might actually be). It also puts all the future financial risk on the customer. An equitable fixed term contract ought to share the risk (the customer is tied in but the supplier is committed to the price). So they won’t want to see the end of that.

However, Ofcom’s statement this morning is unequivocal. If they had meant to leave room to back down they would have done so.

I couldn't agree more. It isn't a fair term that, as customers bound in contracts, we do not know in pounds and pence how much we will be paying for our services in just four months' time.

So, assuming this goes through, how will the telcos try to counter it? A flat 10%, 15%, 20% extra each year..? It seems to me likely they will all congregate around a similar figure, the same way they did (by and large) around the inflation +3.9% figure.

My guess is that they will make a long term assumption that a 5% increase will, most years, yield them an above-inflation uplift. That amounts to 50p per £10 monthly payment, so after year one on a £30/month contract they would have to say the price was going up by £1.50, so £31.50 in year 2. After that if they stick with the percentage they would be lifting it by £1.60 (rounded up) to £33.10. For ease of marketing they might just say £1.50 a year.

[Pierre]

Telcos are feeling the squeeze. The COVID years were salad days.

A lot of people has more disposal income and people working from home needed fatter, faster and better broadband.

But COVID ending and inflation arrived.

In a 180, speed of light turn. Suddenly people are saving money, cancelling subscriptions, choosing lower tariffs, Keeping older phones etc. Switching to Altnets.

VMO2 have taken a massive hit to their Cashflow, as I'm sure every other telco has.

Originally Posted by Pierre

Telcos are feeling the squeeze. The COVID years were salad days.

A lot of people has more disposal income and people working from home needed fatter, faster and better broadband.

But COVID ending and inflation arrived.

In a 180, speed of light turn. Suddenly people are saving money, cancelling subscriptions, choosing lower tariffs, Keeping older phones etc. Switching to Altnets.

VMO2 have taken a massive hit to their Cashflow, as I'm sure every other telco has.

Yup…

Just had an email from VM offering an upgrade from 250Mb to 350Mb for £3 per month extra.

(not taking it - 250Mb is enough for for the two of us (and it’s only that because of Volt/O2 have upped it from 125Mb))

[Joedm45]

Could we see the return of 12 month contracts?

This is your price per month for a year, renegotiate thereafter but likely you'll pay more instead of getting it cheaper like some do when renewing.

Yes, people will hop providers every year if they really want to save a few quid but some will not want the hassle for the sake of £1 or £2 a month

[TimeLord2018]

New price increase model announced
https://www.cordbusters.co.uk/virgin...ice-increases/

[bbxxl]

Since I moved house 6 months ago, I’ve not been able to get Virgin so now pay £25/month for 900Mb up and downstream and £10/month for my telephone (all calls included.
I use ROKU for TV so not as convenient but has the vast majority of what I want.
My broadband/telephone contract has no price rise for the 2 year contract.
I don’t miss Virgin as much as I thought I might and am saving a lot.

[Jaymoss]

I am looking forward to dumping VM next April no matter what they offer me this time. Do not want another contract. I have a long term fixed Openreach supplied deal and FTTP is rolling out in my area. Bye Bye VM at last

[bbxxl]

I would check your other options. Plenty of synchronous providers - Openreach isn’t one of them (yet, they are trialling in small areas, I believe).
Check https://bidb.uk/ for your options.

[RichardCoulter]

Originally Posted by TimeLord2018

New price increase model announced
https://www.cordbusters.co.uk/virgin...ice-increases/

At £3.50 a month, because inflation remains low, Virgin are to increase prices more than any other provider at a rate higher than under the old scheme.

This must be why they are currently proactively contacting customers to extend their contracts, so that they cannot leave without paying about 95% of the remaining contract.

While £3.50 may be fixed, it also seems a lot, esp on lower priced broadband.

Still, I'm kicking them into touch soon anyway, a new customer pays £27 a month less than me (for 18 months). Scamming bar stewards.

[Peter729]

Originally Posted by Paul

While £3.50 may be fixed, it also seems a lot, esp on lower priced broadband.

Still, I'm kicking them into touch soon anyway, a new customer pays £27 a month less than me (for 18 months). Scamming bar stewards.

Virgins definition of loyalty is

MUG

[RichardCoulter]

The way in which Virgin increase their prices was covered in today's Rip-Off Britain:

https://www.bbc.co.uk/programmes/m00255zm