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NewNet ISP Hikes Broadband ADSL Prices

Posted: 31st Dec, 2006 By: MarkJ
Readers on our forum (here) and Thinkbroadband note that UK ISP NewNet appears to have quietly (customers informed by e-mail) raised its broadband prices:

The "Home S" package cost rises from £18.95/month to £21.95/month whilst the Home B rises from £21.96 to £34.95/month with 25 and 60GB usage included respectively inclusive of VAT. Extra usage is charged at £7 per 10GB when purchased in advance or £3.90 per 3GB in arrears. These prices also assume payment is by direct debit.

Business broadband packages are priced at £30 (Business S), £40 (Business B) and £60 (Business S) excluding VAT.

The provider states that bandwidth usage has increased significantly during 2006, pushing it into the position of either introducing greater restrictions or raising prices.

In fairness NewNet may not be the only ISP to do this during the coming year, especially with some broadband suppliers raising their prices too. We wouldn't be surprised if faster speeds had also contributed by making certain content (streaming video etc.) more accessible. Ironically perhaps, BT hopes to drop some of its wholesale ADSL prices in a few months time.

Regardless, many customers will obviously be angered because the jumps are far from marginal increases. In one instance the price for a Home B package jumped from £21.96 to £34.95 per month (+£12.99), which is aggressive to say the least. Since many users spend what they can afford, that kind of hike is likely to force them onto a rival provider.
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