Just had an interesting email from TalkTalk trying to tempt me into a contract renewal offer as I am currently out of contract after my last Fixed Price Plus deal ended.
Here are some highlights:
"The first option is to continue with your current service which includes Fixed Price Plus¹ so you'll continue to pay £25.58 per month. Your monthly price will rise each April in line with Consumer Price Index (CPI) rate of inflation"
I'm actually paying £25.57 per month but TalkTalk never were too hot on getting details correct.
"The second option available for you is to move onto a new, matching Fibre 65 contract for £27.00 per month for another 24 months. Your monthly price will rise each April by £3"
So taking their deal, I'll pay an extra £1.43 for the next 7 months, then another £3 per month on top of that from April.
So let's just compare what I would be paying for the next tax year from April:
From April I would pay £30 but since I would have been paying an extra £1.43 for the previous 7 months if I take the deal now, let's average that out to the equivalent of about £0.83 per month over a year, giving me the equivalent of £25.57 until April then £30.83 for the next tax year, or about a 20.6% increase on the price I'm currently paying.
The following tax year the price will go up a further £3 (or 10%) to £33.
So the way I see it, if I reject the deal and do nothing, I'm gambling that the CPI rate of inflation next April will be less than 20.5% and less than 10% in April 2027 for me to be better off sticking with the status quo. Does that sound about right?
