topic New Customer Discounts in Broadband

New Customer Discounts

THOMO2353 — Mon, 21 Oct 2024 21:27:22 GMT

Why do new customers get faster broadband for less than customers who have been with SKY for 15 years +

Re: New Customer Discounts

Daniel0210 — Tue, 22 Oct 2024 06:19:17 GMT

All providers offer good deals as an incentive for new customers to sign up. When their new 2 year discounted term ends they'll be in the same position. Likewise if you leave Sky and go elsewhere the same will happen to you there.

Re: New Customer Discounts

Chrisee — Tue, 22 Oct 2024 06:55:11 GMT

@THOMO2353 Sky are incentivising new and existing customers to move to full fibre when that becomes available in their area. Full fibre has lower costs to both Sky and Openreaxh and is the future.

Re: New Customer Discounts

TimmyBGood — Tue, 22 Oct 2024 08:01:11 GMT

@THOMO2353

Unfortunately it's standard practice across the industry: ISP pricing is calibrated knowing the percentage of customers who don't switch and so end up paying full list cost.

Re: New Customer Discounts

Neil+Thompson9 — Tue, 22 Oct 2024 08:07:34 GMT

I suppose it's the same as car insurance but it's the best way to drive away existing customers to new providers. Surely these companies aren't stupid enough to realise they're just creating a very expensive little merry go round in their own industry?

Re: New Customer Discounts

TimmyBGood — Tue, 22 Oct 2024 08:29:11 GMT

@Neil+Thompson9

Actually private car and domestic home insurance are supposed to be rare exceptions to the 'loyalty penalty' because their industry regulator has used its own price control powers to insist renewals are available at new customer rates: unfortunately Ofcom was not given similar power over ISP pricing by government.

https://www.abi.org.uk/products-and-issues/topics-and-issues/important-rule-changes-to-the-pricing-of-home-and-motor-insurance/