Virgin Media ups annual broadband price rises but | Tech News

Virgin Media has raised its annual price will increase for its broadband and TV packages from £3.50 per 12 months to £4. The will increase apply to new and re-contracting prospects but don’t have an effect on these at present in contract.

It means as soon as you start a new broadband or TV package deal with Virgin Media, your invoice will increase in price by £4 every April after you begin the contract. This applies to all of the firm’s 24-month plans.

The modifications come as Virgin Media concurrently up to date its broadband and TV bundles to incorporate sooner speeds, Netflix at no cost with some packages, and Sky Sports in HD as commonplace.

“Customers taking one of our latest packages, which offer fantastic value including Netflix as standard on all TV bundles and Sky Sports in HD at no extra cost, will see their prices rise by £4 a month each April,” a Virgin Media spokesperson stated. “No prices are changing now and no changes are being made to existing customer contracts

“This 13p a day rise represents excellent value for connectivity customers use more than ever and is greatly outweighed by the £5m we invest every single day into our networks and services to ensure we continue to provide the fast, reliable connectivity our customers expect and rely on.”

The firm stated the bottom broadband velocity now accessible with its TV packages is its M250 service (reference to 250Mbps obtain speeds), an increase on the earlier default.

Its standalone M500 and Gig1 companies (500Mbps and 1Gbps) have stayed the identical price for new contracts at £33.99 and £38.99 respectively, but now embrace Netflix Standard with Ads at no cost, a service that prices £5.99 per 30 days from Netflix.

Virgin Media opts for a blanket price rise throughout all its companies, together with broadband and TV bundles, somewhat than combining two separate will increase for the broadband and TV merchandise.

“Virgin Media’s new price increase comes as the provider refreshes its line-up, including offering Netflix with ads as standard on its plans over 500Mbps and faster speeds with TV bundles,” stated Ernest Doku, Uswitch broadband knowledgeable. “For customers considering taking out one of these more premium plans, this added value may offset the £48 yearly price rise.”

Sky Sports, if included in any bundle, is now supplied in HD as commonplace, an add-on that beforehand value £7 per 30 days. New prospects also can add Talk Anytime to bundles for £8 per 30 days, down from £15, offering limitless landline calls at any time of day to UK landlines and mobiles.

Despite Virgin Media’s proof of added worth in these modifications, the firm’s increase to £4 for its annual contract price rises has obtained criticism.

Consumer watchdog Broadband Genie stated the increase is “almost double the limit households would have faced under the old Ofcom inflation-based rules.

“Previously, under the old inflation-linked system broadband providers would have been restricted to price rises of around 8.5% given the current RPI figure. However, since Ofcom introduced new regulations just eight months ago, providers have been able to push through bigger hikes – and it’s now clear that Virgin Media is wasting no time when it comes to squeezing their customers on price.”

It warned households might face considerably rising contract price rise prices within the subsequent 5 years.

“We warned this would happen, and now it is. Consumers are being squeezed harder than ever,” stated Peter Ames, Broadband Expert at Broadband Genie.

“The only way to protect customers is to outright ban these absurd mid-contract price hikes. Until Ofcom takes action, we urge all consumers to check whether they’re still in contract. Our records prove that one in three households is free to switch right now, and with many providers offering competitive new customer discounts, this could be the best opportunity to protect your budget before further price rises kick in.”

Virgin Media is just not alone in rising its mid-contract price rises, with BT, EE and Plusnet additionally not too long ago raising prices.

“Ofcom has never restricted how much providers can raise prices. That’s because the UK has competitive telecoms markets, and last year, average prices for broadband bundles fell,” stated Cristina Luna-Esteban, Ofcom’s Director of Consumers and Retail Markets.

“Our protections make sure consumers can shop around with confidence and make an informed decision about which package is best for them.”