New Customer Discounts

[THOMO2353]

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

[Daniel0210]

@THOMO2353 

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.

[Chrisee]

@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.

[TimmyBGood]

@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.

[Neil+Thompson9]

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?

[TimmyBGood]

@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-o...