Zen Internet UK Scraps Lifetime Price Guarantee for New Contracts
Last month we revealed that UK broadband ISP Zen Internet had put their headline grabbing “Lifetime Price Guarantee” pledge (i.e. no price rises for as long as a contracted customer stays with them) under review for new customer contracts (here). As expected, Zen has now confirmed that new customers will no longer be able to benefit.
At the time we speculated that, given the current climate of surging inflation (CPI hitting 7%) and the rising costs in other areas (e.g. energy and key products), then it may have simply become too difficult for Zen to maintain such a commitment. Nevertheless, Zen stopped short of confirming that their ‘Price for Life‘ commitment would end for new customers, and instead spoke of it as being under review.
The writing was thus perhaps already on the wall and few readers will now be surprised at the provider’s latest announcement to customers, which was issued this week and states that “our Price for Life offer will no longer be available for new contracts” (credits to Cameron for spotting).
Zen’s Notification
Upcoming changes to Price for Life
Over the last few years, we’ve been proud to provide all our customers with a Price for Life (also known as a Lifetime Price Guarantee) on our broadband packages. This is our pledge that for as long as you stay on the same package the price of your Zen broadband service will never increase.
As an existing customer, our promise remains in place for your current broadband package.
Since we launched Price for Life, the world has changed in ways we couldn’t have predicted. Inflation is at its highest in decades and our costs continue to increase. To ensure that we can continue to invest in our people, the planet and to deliver a consistently high level of service to our customers, our Price for Life offer will no longer be available for new contracts.
As above, existing customers will be unaffected by this (Zen pledged that “the price you pay for your broadband will never increase“), at least until they need to re-contract via an upgrade or package change. But Zen will at least maintain some commitment toward fixed price contracts for new or re-contracting customers.
“Should you take out a new broadband contract with us from 1st June 2022, it will now be covered by our new Zen Contract Price Promise, which means there will be no price increases for the duration of the contract,” said the ISP.
A quick look at the latest T&C’s for Zen’s Lifetime Price Guarantee appears to confirm that new customers will continue to receive the Price for Life commitment on packages ordered before 31st May 2022, so there’s still time to benefit if you act fast.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and Linkedin.
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I can see why they are doing this as inflation wasn’t expected to be as high originally.
I hope they only do it occasionally and not a yearly farce like the other big (greedy) providers (once inflation is normal levels again).
It won’t be at normal levels until interest rates are raised significantly and the economy has crashed/reset.
They didn’t expect inflation to be this high within 1 year? What about 5,10,15 years? I know people that have zen since it was founded. If they knew they couldn’t stick to a price fix, why suggest it in the first place.
Marketing con
John – what are you on about chap? They have stuck to their price promise for years and will continue to do so for existing customers remaining on the same contract. So it is not a con at all.
Also, businesses can try to predict inflation but to say that a record level of inflation is no excuse is silly. They don’t have to provide an excuse, it’s a reason and they’ve explained it. You don’t have to use Zen if you don’t like them or agree with their policies, but you’ll be hard pressed to find an alternative provider that is as open and transparent as they are. Most ISPs will just put up prices and end promotions and give no reason at all.
You sound totally sour grapes. I bet it doesn’t even affect you.
Their main “supplier” has hitched a ride on the inflation train, so it is not realistic to expect Zen to be able to protect it’s customers from price increases. I use Zen because of their outstanding service levels.
Some Zen users still having major issues a week after Zen told this web site it had been fixed.
Since we launched Price for Life, the world has changed in ways we couldn’t have predicted. Inflation is at its highest in decades and our costs continue to increase.
No Excuse!
Hey Simon – how’s your business doing during the current cost and inflation crisis? What financial contingency planning have you done and implemented so far and what short to medium term planning is ongoing?
Oh, what’s that? You don’t run a business or know the first thing about doing so? Right, got ya.
Eh. In January 2021 you published an article highlighting that Zen had reduced their full-fibre prices (see https://www.ispreview.co.uk/index.php/2021/01/isp-zen-internet-cuts-the-price-of-their-uk-fttp-broadband-plans.html), from £54.95 to £49 for 300Mb and from £69.95 to £62.99 for 900Mb. Those prices today are £43.99 and £59.99 respectively (all per month, including VAT).
Given prices have consistently fallen for broadband, I don’t see the justification in scrapping the lifetime price guarantee. While it’s appreciable that some costs are rising (e.g. staff, energy), others have consistently fallen and are likely to continue to do so. It’s a shame because the lifetime price guarantee was a pretty strong USP of Zen’s.
The way I see it:
Over the next few years, increasing numbers of Zen users will be forced to re-contract from FTTC to FTTP due to copper withdrawal. If they are long-term FTTC users, they will see substantially higher prices (assuming Zen will not want to sell FTTP at legacy prices). These customers may be aggrieved that the lifetime price promise did not help them through a technology shift that they didn’t ask for.
It seems sensible to drop the price promise now, so that in 3-5 years time, due to natural churn, the number of customers who still have it is lower.
If they are on FTTC, they do not need FTTP to be able to use a digital voice VoIP service
Shame they had to do this and I hope they bring it back in a few years when inflation and general costs come down again.
At least they’re honouring their commitment to existing customers. Can’t say fairer than that.
Glad my fttp order is completing on the 17th May (regrade from zen/vdsl).. 24 months price promise including the discount they gave me…
From what I understand mine won’t go up until the end of the 24 month contract as I Took it our before 1st June.
If you ordered before 1st June it wont even go up after your 24 month contract. You will keep the “price for life” unless you take out a new contract after 1st June. Stick on the same contract and you keep the same price.
Wow, so new customers subsidise old ones now?