Should the cost of internet go up?

Guest2

Guest2

Guest2

Soldato
Joined
6 May 2009
Posts
20,362
I have been with Hyperoptic for 5 years now

12 months ago I took out a contract for 150Mbps service that was £26/month
24 months ago the same service was £22/month
The same 150Mbps service is now £29/month

I started using Hyoperoptic 5 years ago on the 1Gbps service and was paying £42, this service is now £49
/month, but 5 years later!

Shouldn't it go the other way around?
 
Guest2 said:
Shouldn't it go the other way around?
Click to expand...

Why? ISP costs will increase with inflation with everything else, so stands to reason that the product price will increase. That's excluding any other costs they may have for expansion etc.
 
On one hand, due to economies of scale for a company like Hyperoptic, you would expect the cost per person to reduce, as they’re getting more people onboard. However, equally, they’re investing more and more money in new infrastructure, data centres etc, and with inflation, I would expect the typical cost to go up over time.
 
I'm struggling to think of a subscription-based service that hasn't increased in cost over time.

The problem with FTTP connections is that unless you're on the Openreach network, you can't play the switching providers game.
 
Yaayuh! said:
Why? ISP costs will increase with inflation with everything else, so stands to reason that the product price will increase. That's excluding any other costs they may have for expansion etc.
Click to expand...
Other tech service do not, my phone contract hasnt changed in years (Three) It's actually gone down in cost.
Sky has gone down in cost too
 
Always going that way unless there is more competition. Seem to be able to shop around and get deals with normal providers but in my area its virgin media or nothing if you want faster than 30-60 meg.
 
Guest2 said:
Other tech service do not, my phone contract hasnt changed in years (Three) It's actually gone down in cost.
Sky has gone down in cost too
Click to expand...

My Three contract price keeps increasing, so interested to learn why yours is decreasing!

In fact, looking at Three's site:

If you joined us or upgraded your phone or Mobile Broadband plan on or after 29 May 2015, you’re subject to price changes each May. This allows us to increase your monthly recurring charge by an amount up to the January Retail Price Index (RPI), which is the rate of inflation.

This has been set for 2020 at 2.7%, so you’ll see this increase on or after your May bill, and from then onwards.

Does your contract price not rise each May?
 
Phone contracts can be pretty easy to haggle on with the number of providers you can switch to. I would be surprised if the cost has gone down without any involvement from yourself though, due to RPI, as noted above.

I'm shocked to hear the cost of Sky has gone down, I thought the pricing was pretty mental if you wanted the sports and movie channels.
 
I think ADSL was £30 in 2002 on top of the phone line rental, for a 512Kbps service. That's £49 now, so to get a gigabit for that price actually is a huge reduction of the per-Mbps rate.
 
Inflation is a thing, wages/costs have gone up for most things required to provide you with service and they are investing millions to build a network that will take decades to pay for itself. Think of the cable network build and the decades of consolidation/debt that resulted from that. Also remember 512k used to be £50/m if you were lucky enough to be able to get it, as an industry the cost per megabit has drastically dropped.
 
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