With the government’s recent VAT initiative set to get people spending again, consumers across the country have been disappointed to find that a number of companies, shops, and service providers have failed to pass on the full rate cut.
So what about broadband? Is this a good time to pick up an extra-cheap deal? Well, according to thinkbroadband.com, a number of broadband providers are taking the cut on board and offering to pass it on to their customers.
The first to do so were BT Total and Plusnet, the latter of these companies is actually lowering prices even more than necessary for the sake of convenience. The other top performer is Be Broadband, which will be cutting rates by 50p a month on all its packages and is therefore providing one of the best discounts around.
Those passing on the full rate cut include O2 and Virgin, who are both planning to drop their rates, even though it may take a bit longer for the changes to show. Andrews & Arnold and Newnet are also going to pass on the full rate cut but are not going to go above and beyond what is expected.
Orange faces an altogether different problem, promising to pass on the price cuts but having a few difficulties because their tariffs are designed on simplicity, offering deals for exact amounts such as £5 and £10.
However, some providers have completely failed to pass on the cut, offering a number of excuses in the process. UK Online has decided to keep its prices the same, bringing no change to the consumer at all, even though the increased prices of their services suggest they should be making a few more improvements.
Carphone Warehouse is also not going to pass on the cuts to its customers. However, it will aim to improve the service it is offering, according to ISPreview.co.uk.
One can’t help but feel that it all seems like a lot of trouble for nothing. It will be an administrative nightmare for all of these companies to change their pricing schemes, and with a maximum of about 50p being saved per month, it is hardly time to crack open the bottles of champagne.
However, it actually provides an interesting insight into the broadband operators’ attitudes towards their customers. Surely it is better in the long run to pass on the VAT cut just to avoid looking stingy in the future. Therefore, the providers that were the first to drop their prices, BT and Plusnet, have probably won an unexpected branding battle that could well do them a few favours in the future.
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