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arrgee1991
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End of Contract

As a result of this, Virgin will be obliged to offer existing customers the same prices as new customers.  Good.

https://www.bbc.co.uk/news/technology-48268427

...from 15 February 2020

Service providers will need to text, email or send a letter to their consumers between 10 to 40 days before their contracts come to an end saying:

  • the date their contract can be terminated without a penalty
  • the price they have been paying
  • any changes to the price or service that automatically come into effect after the date
  • how much notice they need to give to cancel the deal
  • the best alternative subscriptions on offer, including the prices charged to new customers

...companies should also be made to disclose how many of their subscribers are out-of-contract and how much extra on average they are paying compared to in-contract users.

"Almost nine in 10 people think that charging loyal customers more is unfair, and we agree," commented Gillian Guy, Citizens Advice's chief executive.

"We look forward to hearing about the concrete actions Ofcom will take to end this systematic scam."

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Jomodu
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Re: End of Contract

Yes...just read this. At least a good start. Today I got a email from my energy supplier says that I was within 49 days of the end of my present contract and listing all details of options and costs etc. Brilliant. 

Love to see what VM provide in terms of alternative deals!  Hopefully, the next Ofcom ruling will bar the new customer discounts and bring a level playing field for all customers. 

 

 

 

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Superuser
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Re: End of Contract

Interesting. Have to keep an eye on this.

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arrgee1991
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Re: End of Contract


@Jomodu wrote:

Hopefully, the next Ofcom ruling will bar the new customer discounts and bring a level playing field for all customers. 


No hopefully about it. From February 2020 they will have to. In my opinion, they should do it right now.  I see no reason not to.

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Superuser
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@arrgee1991 wrote:

@Jomodu wrote:

Hopefully, the next Ofcom ruling will bar the new customer discounts and bring a level playing field for all customers. 


No hopefully about it. From February 2020 they will have to. In my opinion, they should do it right now.  I see no reason not to.











The sad part is it just hurts the customers who wanted the cheapest deals. Those that would swap every contract to take a new deal got rewarded for their effort.

 

Now the prices will go up to compensate for the lazy/apathetic customers who paid a higher price previously, now getting a lower price.

 

Example, if customer A (new) pays £30 now and customer B (existing) pays £40, they will both end up paying £35 instead.

 

 

Be careful what you wish for.

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Jomodu
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Re: End of Contract

@Shafreya.......sorry I don’t understand the logic of that really. A “one -price” policy will be up for some and down for others, but market forces will, at least, make it a more competitive realistic price. There is an enormous gap at present.  I don’t think it fair to call all customers who pay more as “lazy/apathetic”. There is still quite a difference between what new and loyal customers pay even after the annual haggle each year. Obviously, you are better at horse trading than I am. 

I just think it wrong that the price people pay for an identical service depends on who can haggle the best. It should be fair and open to all. I am not totally against new customer incentives but the VM model is really excessive now. I just want to pay a realistic price for a good service and at a level that is the same for everyone.

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arrgee1991
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Re: End of Contract


@Shafreya wrote:

@arrgee1991 wrote:

@Jomodu wrote:

Hopefully, the next Ofcom ruling will bar the new customer discounts and bring a level playing field for all customers. 


No hopefully about it. From February 2020 they will have to. In my opinion, they should do it right now.  I see no reason not to.

The sad part is it just hurts the customers who wanted the cheapest deals. Those that would swap every contract to take a new deal got rewarded for their effort.

Now the prices will go up to compensate for the lazy/apathetic customers who paid a higher price previously, now getting a lower price.

Example, if customer A (new) pays £30 now and customer B (existing) pays £40, they will both end up paying £35 instead.

Be careful what you wish for.


The gripe many existing customers have is they are subsiding the recruitment of new customers. Also if every customer got the same price and there was no negotiation of contracts needed, virgin could save money by not having a large workforce to deal with that. What Virgin is pretty poor at is upselling because of the convoluted packages and discounts. As an example, I chatted today to find out how much it would be to upgrade from player tv to full house tv.  Instead of getting a straight answer, I got a load of sales spiel and was then offered the full house package with faster broadband. I asked if price included line rental. I was told it did, so I asked what the price was with line rental saver. Apparently, exactly the same...

... I declined. So rather than Virgin getting a few extra quid, they are getting nothing extra. Would be simpler if I could just order that online, but I can’t. 

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arrgee1991
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@Jomodu wrote:

 

I just think it wrong that the price people pay for an identical service depends on who can haggle the best. It should be fair and open to all.


At Now TV there is no negotiation, but if you cancel they make an offer you can’t refuse. But that is fair and open to all.

Netflix and Amazon don’t negotiate at all.

Mobile phone companies will always negotiate, except Virgin who put your tariff up from £6/month to £13/month without notifying you.

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Superuser
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Re: End of Contract

higher prices for all.
and the op post i read that as the ISP has to notify the customer of the price they can get and what it would cost new customers. it doesn't say they have to give the services at that price. Its for you to know how much your paying over new customers

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arrgee1991
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Re: End of Contract

@apcyberax wrote:
higher prices for all.
and the op post i read that as the ISP has to notify the customer of the price they can get and what it would cost new customers. it doesn't say they have to give the services at that price. Its for you to know how much your paying over new customers


It would be interesting to see a letter that states you will pay £50/month going forward, but new customers will pay £30/month.  Can’t see that happening. Having to deal with 8% of your customer base asking why they can’t get the new customer price will see to that.

I suspect that the outcome could be a shift of offering existing customers better deals than new customers as retaining customers is cheaper.

Higher prices for all? No.  Lower prices for many? Yes.

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