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Keeping you up to speed

Kei_M
Community Manager

As you can imagine, with costs such as energy bills rising fast, our running costs are increasing too. So, to make sure we can keep giving you the service you expect, the price of your package may be going up. If you have been contacted and want to find out more, click below.

https://www.virginmedia.com/help/pricechange2023 

Leonardshaircut
Tuning in

Just received letter regarding the upcoming price increases which is £12 for my package of broadband, landline phone and tv.  It’s an increase of approx 23%.

Before I decide whether to haggle for a new price or leave virgin altogether, is this about the norm for price increases as I read somewhere that the increase should be  about 13%? Want to get my facts straight before I proceed.

Andrew-G
Alessandro Volta

The price rise is (in VM's universe) around 13.4%.  But the way VM calculate the price rise is mendacious in the extreme, as a result those calculations the % increase for customers increases the bigger the discount the customer gets - some people are seeing 29.9% rises.  This year you can negotiate or leave, if still a customer next year you won't have that luxury because VM are changing their T&Cs such that next April you'll be hit by an RPI+4% increase (perhaps 10%) that you won't be able to renegotiate.  

The reason that the increase is greater for customers on discounted deals is because VM apply the price increase to the undiscounted bill, then add the result of that to your discounted bill.  So using the example of the current introductory offer for the Big Bundle at £29.99 a month, which has an undiscounted price is £65 a month.  From VM's point of view that's not 53.8% discount, that's a fixed £35.01 discount.  If the standard rate changes, your underlying price gets increased, and then VM keep taking off your £35.01 - you're still getting that discount.  However, a 13.8% increase - assuming that's the rate VM apply to this bundle - on £65 will be an extra £8.97, when that is added to the £29.99 bill, what that customer pays is going up by 29.9%.  Since VM like to keep standard pricing in round numbers, the actual increase varies a bit on each bundle, but the effect is much the same as outlined here.  Now let's add this year and next year's increases together and see what happens:   

March 2023: Discounted rate £29.99.  April 2023 price is (£65.00 x 1.138) - £35.01 = new discounted price £38.96, new standard price £73.97, effective price rise 29.9% 

March 2024: Discounted rate now £38.96.  April 2024 price is (£73.97 x 1.10 (guessed RPI+4%) - £35.01 = new discounted price £46.36 (new standard price £81.37), effective in year price rise 19.0%

And for a customer who takes this year's price rise lying down, that means in April 2024 they'll be charged 54% more than the price their fixed term contract started on.  If negotiating with Retentions, here's my suggestions.  None of this worries me though, I'm now with a smaller customer-focused ISP on a fixed price deal for the remainder of this year, and I've cancelled VM, they can go and rob the complacent. 

Wilts
On our wavelength

Was just about to post a similar Q, so i'll join this new thread.

Havent received my letter or email yet about any price increase, but already weighing up alternatives after 25 years with VM/Telewest before.

The long and short is that we watch little outside main terrestrial channels and news channels, other than UK Gold, so i've come to the conclusion we dont need VM and a £90/month bill.

Thinking of sorting freeview, our aerial aint great so might need an aerial guy to sort. Will likely subscribe though to Netflix and maybe another streaming platform.

So trying to suss out broadband for my post code which, other than Virgin, aint great to be blunt. 67 mbps fastest in my street (away from VM). Anyone know if 67mbps is good enough to stream netflix, etc via my smart tv?

The big pain with leaving VM is having to change my email address, which is 20+ years used. I do have a google one but i dont really use it for messaging.

Any thoughts, guys?

Leonardshaircut
Tuning in

Thank you.  That explains the 23% increase.

I am currently looking around for other providers but will have to take into account the broadband speeds as I do have Netflix and Prime which I stream through fire stick and would like to carry on with these. Tbh it’s the dreadful customer service from the overseas call centres which is driving me away.

Freestyle
On our wavelength

It's a ridiculous rise any calculation you use.... Bit unfair on comments regarding outsourced call centres.... Never had an issue whatsoever, in fact, was same people that offered my current package (going up to £88 in April) for £52 fixed for 12 months...only drawback am stuck for 18 months... But considering saving over next year & xlnt broadband speed, happy enough..... 

acdeag
Up to speed

67mbps is fine for Netflix

acdeag
Up to speed

I m off, I have got a Hyperoptic connection installed. 

jayjayj
Tuning in

Freestyle When i rang virgin i could not get a deal i was told to ring again so will try again in a week or 2, 

 

brads
Up to speed

Are virgin serious,a price rise of £21:50 per month. No way on earth I will stay with them, they have lost the plot.

Andrew-G
Alessandro Volta

As soon as you phone to cancel they'll start talking discounts, albeit generally modest discounts and with a new 18 month lock in starting.  Or if you do cancel then during your 30 days notice they'll start calling you with the potential for serious discounts (the sort of deals they offer new customers).

If you decide to stay, then check you're happy with the change to terms and conditions that set next year's price rise at RPI + 4%, and because those terms will then be written in the conditions then come next April you won't be able to leave or renegotiate until your fixed term ends.  Moreover that is applied to the undiscounted price, so customers on good deals see much higher prices than the headline level announced.  As a guide, if you negotiate a deal around new customer discount level now, then next April it'll likely go up by 20% or so, that'll you'll have to take.

Or maybe consider Sky.  Price increase this year is significantly lower than VM, and I believe that (unlike VM) they haven't baked a mongo price rise into their broadband package contracts, so if they do increase prices next year you'd have the option to leave or negotiate.

Ashleigh_C
Forum Team

Hi there @brads 

 

We always balance our prices with the need to continue investing in our network, products and services.
 

  1. Like many businesses, we’re experiencing rising costs due to inflation. We are not immune to rising costs, primarily due to wider economic changes from rising inflation.
     
  2. We’re seeing growing demand for data – with usage growing by more than 10% each year. Last year, we invested more than £2bn in our networks, which contributed to average broadband speeds increasing more than 40%, while helping to make sure our customers stayed connected and were able to keep using our services more and more.
brads
Up to speed

It's just extortionate,I have 1 Gig broadband but have never achieved that speed.£21:50 is just way too much. I will be moving elsewhere.

brads
Up to speed

I would buy some new scales ,its absolutely ridicules.  

brads
Up to speed

O2 can go as well while im at it.il make do with freeview and Prime video,as for football i can watch the game i want in full 24 hours after it ends.I never watch sky movies .I dont want a landline because i never use it.I could end up saving a fortune.

Matthew_ML
Forum Team

Hey brads, your individual price rise will be specific to the service you have. Overall, the average price rise is 13.8%. Some price changes will be lower and some customers will be excluded completely. 

You can make changes to your account anytime you want such as removing services such as this.

Have you tried this here Thanks 

 

Anonymous
Not applicable

The link is dead. 

Matthew_ML
Forum Team

Hey cardiffman281 I am sorry the lin is not working for you.

If you try this, it should work.

If not I would try a different browser / device. Thanks

neilied
On our wavelength

Just had this through by email today. Currently paying a recently renewed price of £27/month for Volt200. No other services. Todays email sees an increase of £7 per month 26%. Errmmm nope. Can’t stomach that. Service has been up and down of late but will wait and see what’s what and use that as an exit.

uk338
On our wavelength

I've been searching around trying to find out how the 2023 price rise has been calculated. I've got a £69 package reduced to £43, and the price increase is £12 in May 23.

That's not 13.8%, what's going on?

unisoft
Rising star

@uk338 wrote:

I've been searching around trying to find out how the 2023 price rise has been calculated. I've got a £69 package reduced to £43, and the price increase is £12 in May 23.

That's not 13.8%, what's going on?


they calculate on the non-discounted original price but cant see the math for the figure you quoted using 13.8%.......