Budget UK ISP Plusnet Launch Fixed Price Broadband Contracts

Low cost ISP Plusnet will today follow TalkTalk’s lead by launching their own range of fixed price broadband and line rental (phone) contracts for residential and small business customers, which means that the price you pay will stay the same for the duration of your minimum contract term.

At the end of a minimum term the provider has also pledged to conduct a personal account review in order to “make sure you’re on the best package to suit you.” On top of that they’ll be adopting Ofcom’s recently proposed contract clarity measures (here), which means customers will be informed – before their contract ends – about any future post-contract price increases etc.

The change isn’t being applied to existing contracts, which means that it will only apply to residential and small business customers who are either signing up to a new contract, re-contracting or changing product. As usual this only affects the broadband and line rental service, which means that extras will still be  subject to price changes while in contract (e.g. call plans, call charge rates, set-up fees, TV, BTSport etc.).

Sadly the new fixed price contracts do not at present extend to Plusnet’s Mobile (4G) plans (note: it’s irrelevant to their 30 day plans) and there are some caveats for those who move house, such as if doing so will take you out of the provider’s “low cost area” (i.e. you’ll have to pay the higher charge for a non-low cost area). Luckily only around 0.9% of UK premises fall outside of the ISP’s low cost area, which reflects Ofcom’s revised market definitions (here).

Existing customers should later this morning be able to find out further details via Plusnet’s My Account page (navigate to ‘Help > My Account > General Account Questions > Fixed Price Contracts‘). Otherwise we believe that their current packages and prices won’t be changing (it’s only the contract policy that’s changing), but we’ll update again later with any additional details.

The move appears designed to counter the success of TalkTalk’s similar Fixed Price Plans, which has helped the ISP return to growth. As such TalkTalk might soon need to change this statement on their website: “We’re the only major provider to 100% guarantee that the broadband price quoted will stay the same throughout your Fixed Low Price Plan. Even if our costs go up we won’t pass them on to you.”

On the other hand TalkTalk already goes one further by promising to offer those looking to re-contract “the same great deals as new customers.” First Utility has also waged into a similar field by pledging that at the end of your contract term “we’ll not increase your monthly charge,” although it’s unclear whether Plusnet will do the same.

In any case this is a positive development for consumers, although many believe that fixed price contracts should be the market norm rather than the exception. Perhaps with time it will be.

UPDATE 7:55am

As expected, other than the new fixed price contracts, it looks like Plusnet’s latest package offers for home users are broadly unchanged. As before new customers can expect to receive an included wireless router, phone line rental, parental controls (network-level filtering) and UK-based customer support.

A number of UK calling add-ons are also available (e.g. anytime calls), albeit at extra cost, and if you need a new phone line installed at your property there’s a £49.99 one-off installation charge.

Unlimited (10Mbps Average Download)
Price: £19.99 per month for 18 months (£29.98 thereafter) + £5 Activation
Bonus: £50 Cashback

Unlimited Fibre (36Mbps Average Download)
Price: £23.99 per month for 18 months (£34.98 thereafter) + Free Activation

Unlimited Fibre Extra (66Mbps Average Download)
Price: £28.99 per month for 18 months (£39.98 thereafter) + Free Activation