Newnet Price Increase

Just got this from Newnet:

*****************************
Dear customer,

NewNet continue to provide an open, uncapped service and have increased
some charges as bandwidth usage surges ahead of forecast.

We have seen a tremendous growth in the broadband user base over the
past 12 months. As the year has progressed more users consumed more
bandwidth than ever before. For a while, customers on LITE and Office
services were effectively subsidising users on other services where
bandwidth usage has sharply increased. In order to continue offering
uncapped and fully open service NewNet are increasing charges on
services and also raisng the charges for additional over quota
bandwidth
purchased in advance or in arrears.

Recurring charges for NewNet LITE and Office services remain unchanged.

Full details of the new charges are at
http://www.newnet.co.uk/broadband/ and come into effect immediately for
new customers and on the next invoice from February 2007, for monthly
and annually billed customers. Customers using the Home 'U' service
will
be charged the same as the new Home 'B'.

Home S monthly payment £21.95 Home S annual payment £239.40
Home B monthly payment £34.95 Home B annual payment £395.40

Pre paid bandwidth charge is £0.70 per GB purchased in minimum 10GB
blocks

Additional bandwidth paid in arrears will be charged at £1.30 per
GB/month charged in 3GB blocks.

All prices shown are for payment by direct debit, include VAT but
exclude additional service options which remain unchanged in price.
Payment by means other than direct debit will increase charges by 5%.

Business Broadband prices ex VAT are as follows:

Business S monthly payment £30.00 / annual payment £300.00
Business B monthly payment £40.00 / annual payment £400.00
Business U monthly payment £60.00 / annual payment £600.00

Very best wishes for 2007 from all the NewNet team.

Darren Merrett
Sales Manager
***************************************

From what I can see, those on the Home U will now see an increase of
about £15 per month just to stay on the equivalent service, otherwise
they have to drop down to the Home S service which has a feeble user
allowance.

I was really happy with their service up until now, but cannot justify
that sort of increase.

On Fri, 29 Dec 2006 22:01:02 +0000, Vitor <(E-Mail Removed)> wrote:

>I was really happy with their service up until now, but cannot justify
>that sort of increase.

Me neither. I'll be getting my MAC next week.

This is an unbelievable increase from what was once a very good ISP.


W.

"Mr Woo" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed) idual.de...
> On Fri, 29 Dec 2006 22:01:02 +0000, Vitor <(E-Mail Removed)> wrote:
>
>>I was really happy with their service up until now, but cannot justify
>>that sort of increase.
>
> Me neither. I'll be getting my MAC next week.
>
> This is an unbelievable increase from what was once a very good ISP.
>
>
> W.
>
It shows the classic signs of a failing business - do NOT pay an annual fee
as I doubt they will be around that long. More customers are about to leave
due to price increases, so they are putting themselves out of business.

"DML" <(E-Mail Removed)> wrote in message
news:45959b8c$(E-Mail Removed)...
>
> "Mr Woo" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed) idual.de...
>> On Fri, 29 Dec 2006 22:01:02 +0000, Vitor <(E-Mail Removed)> wrote:
>>
>>>I was really happy with their service up until now, but cannot justify
>>>that sort of increase.
>>
>> Me neither. I'll be getting my MAC next week.
>>
>> This is an unbelievable increase from what was once a very good ISP.
>>
>>
>> W.
>>
> It shows the classic signs of a failing business - do NOT pay an annual fee as I doubt
> they will be around that long. More customers are about to leave due to price
> increases, so they are putting themselves out of business.

Or does it show a businees that wants to be around a long time?
Newnet arent the 1st (Xifos raised their prices by a considerable ammout
recently too) and i'm sure they wont be the last either !!!
Rocky times ahead for all B/Band users i fear

Tamale Loco

On Fri, 29 Dec 2006 22:22:59, Mr Woo wrote:

>On Fri, 29 Dec 2006 22:01:02 +0000, Vitor <(E-Mail Removed)> wrote:
>
>>I was really happy with their service up until now, but cannot justify
>>that sort of increase.
>
>Me neither. I'll be getting my MAC next week.

Good riddance then.

>This is an unbelievable increase from what was once a very good ISP.

It was never intended to be an ISP for those users who 'took things to
the limit'. Bye.

--
Jim Crowther.

West London MAG: Popes Grotto, Twickenham, every Tuesday from 21:00 onwards.

On 29 Dec 2006, "Tamale-Loco" <loco@NO_SPAM.gmail.com> wrote:

>Or does it show a businees that wants to be around a long time?
>Newnet arent the 1st (Xifos raised their prices by a considerable ammout
>recently too) and i'm sure they wont be the last either !!!

Well put. I think that users will have to "get real" about the way ISPs
offer these products and cannot handle making a loss, so need to alter the
fees or go bust. Inevitably, it means a portion of customers leave them,
and probably some of those who leave caused a disproportionate quantity
of traffic, so the ISP immediately moves from just breaking even (or loss)
to having some extra cash coming in, compared with what goes out, and the
increase in charges actually leads to a higher level of income, despite
lower numbers. Looking at the price, I'd expect relatively few people
fit into their usage patterns - the 3 GB, 25 GB and 60 GB amounts are
probably charged fairly, but hit the next 'band' and be charged 3.90
seems quite steep to me. Especially as their lowest fee looks so good
but for a bit more (14.99) I'm limited to 20 GB during the evening and a
'fair use policy' for the other 18 hours a day... Seems a no-brainer for
me to not consider Newnet - their 25 GB account is about a fiver more and
I estimate my monthly traffic is in excess of 30 GB.

I think Newnet changed their "unlimited" to have a monthly cap in March
when they were getting ready to launch DSL Max products, because the level
of traffic if an "unlimited" service was offered would have forced them to
go bust back in April/May. It doesn't take many leechers to drive traffic
to fully utilise the fat pipes, and cost the ISP money compared with what
fees are being paid. I guess the ISPs have to run their forecasts every
week to see whether the number of new accounts will help cover extra
cost of traffic, and Newnet got to a point where it could see the
receiver being called in if they didn't make a big change to their
income, hence this news. At least they are allowing users to change a/c
for free next month, but I guess some will take the price change as a good
reason to look around. Watch out anyone on EntaNet, I forecast a load of
very heavy users switching over and giving you grief!

I think the Xifos price for extra GB is pretty good (compared with others)
but their starting prices are significantly higher so their users will have
the Zen bug (all together, they chant "you get what you pay for" and don't
seem to think they are paying over the odds... same for some other ISPs!)

Did the sums years ago when BSkyB was upping the fees. If 10% of customers
left they would still have had the same money coming in, and I doubt they
would have reduced the charges for advertisers or any of the other TV
services they carried, just have paid off debts faster.

On Sat, 30 Dec 2006 01:14:44 +0000, Jim Crowther
<Don'(E-Mail Removed)> wrote:

>>This is an unbelievable increase from what was once a very good ISP.
>
>It was never intended to be an ISP for those users who 'took things to
>the limit'. Bye.

You know, one of the major problems with pricks like you is that they
make inaccurate assumptions. Personally, I am a modest bandwidth user
and never approach the limit on my account. I object to a price
increase from £29.95 to £34.95 per month.

Furthermore, if you took the time to check your facts and took a look
at the Newnet section on 'thinkbroadband.com' you would see that most
of the posters who are requesting their MAC's are low bandwidth users
but are leaving because of, in some cases, an increase of over 50%
cost.

Get some facts before you make a twat of yourself.


W.

Mr Woo wrote:

> Furthermore, if you took the time to check your facts and took a look
> at the Newnet section on 'thinkbroadband.com' you would see that most
> of the posters who are requesting their MAC's are low bandwidth users
> but are leaving because of, in some cases, an increase of over 50%
> cost.

I'm a 'low bandwidth' user, about 3-4 Gigs per month. The increase for me is
about £1:20/m or about 8%. I'm staying.


--
Mark
Please replace invalid and invalid with gmx and net to reply.

On Sun, 31 Dec 2006 12:20:53 +0000, Mark Carver
<(E-Mail Removed)> wrote:

>I'm a 'low bandwidth' user, about 3-4 Gigs per month. The increase for me is
>about £1:20/m or about 8%. I'm staying.

You are very lucky Mark. If that was the case for me, I would stay
too.

The sad thing about this is that Newnet have 'pissed off' quite a
number of their 'regular' low bandwidth users who are now seeking to
migrate. A posting by Newnet in thinkbroadband.com has stated that an
influx of a very small number of bandwidth hogs has been the catalyst
for these changes.

It is a shame that a better thought out scheme wasn't designed to curb
those activities and allow the rest of us 'modest' users to continue,
perhaps with an inflation type increase. For me, going from £29.95 to
£34.95 in one step is unacceptable.

W.