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Another price increase

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19 REPLIES 19
bernieyorks
Whizz Kid

Today I got an email that my latest bill has arrived and I was stunned to find that the Sky Sports boost has increased from £8.50 a month to over £26. This is an incease of about 300%.

I rang the call centre and was told they would cancel the boost and I would not have to pay the increase. However, the boost is still working for now. 

I am thinking of cancelling the TV box too as I had that to receive Sky Sports. How do I do that? Since I signed my last contract, which was advertised as fixed price, the cost for calls has increased, the TV box and mobile phone once fee no longer are and now a 300% increase on the Sports channels. What increases next on these fixed contracts? 

Hasthe boost been cancelled? Has the charge been removed?

I was never to;d that this massive incease was on the way. 

OCE_Karl
Community Team - TT Staff

Hi

 

The actual price of Sky Sports boost is £34.  

 

From time to time some boosts are put on offer at a reduced rate for a time, but this is an reduction of the regular price. 

 

For example last year we had the Sports Boost on offer for £8.50 per month for 18 months and the Sky Movies boost on offer for £8 per month, usual price £16 per month.  So there is no increase in the Boost price, this is just the offer that was taken coming to an end.

 

Thanks

 

Karl. 

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bernieyorks
Whizz Kid

It is also a service that I will not pay for any more. Why was I not told it was going to happen? When does my contract end? Whatever you call these changes I keep having to pay more and more or reduce the service which is what I will do. I fave lost Sky now, have cancelled any time calls, have lost the free mobile and will cancel the TV box as likely as not. I am looking for a no frills internet only service and then Talktalk will go altogether. 

ferguson
Community Star

Were you genuinely not aware that the Sky Sports Boost at £8.50 a month was a (massively) discounted offer for a fixed period of time? I seem to remember seeing a promo for 18 months and thinking it was almost too good to be true. Every monthly bill would have told you when the discount expired, did you not look? I sympathise with cases where customers seem to have got caught out by price rises on the hop, but I really don't think this is one of them. 


OCE_Karl
Community Team - TT Staff

Hi

 

All offers such as these are usually for a specified time.  If you look at the Boost under your TV boosts section in My Account it will show when the boost offer is due to end.

 

Thanks

 

Karl. 

Check & Report l Our latest Blog l Set Your Preferences l Service Status l Help with your Service l Community Stars

Working From Home Tips


Please log in to My Account if you need to view or pay your bill, manage boosts and track your usage. From My Account you can also check your connection and test your line for any issues in the Service Centre.


WEAR A MASK      -      WASH YOUR HANDS      -      SOCIAL DISTANCE

bernieyorks
Whizz Kid

If you look at the bigger picture - these inceases are not helping the customer or the the company. Before I was taking Sky Sports via TT and presumably they were making a profit on that - now I am not - so they have lost that profit.

The same appliies to any time calls which was inceased in price. Before I paid for it, and TT received the cash. After the incease I do not and they do not. Instead I use the free calls on my mobile. 

According to just released figures the average revenue per customer is just £24.70 and falling. This means many people are doing the same as me - cancelling boosts and using mobile phones with generous credit. 

TT main attraction was price - the service was always dire via the call centres. I speak as a customer of at least 15 years. 

People on here defend the company's increases but it is not doing the customer or the company any good. The shares fell 7% on Friday and I am a shareholder. 

The arrival of 5G will change things further. 

Increasing prices does not necessarily result in incresed revenue and advertising that the prices are fixed, when in reality they are not, does endear customers to those making the claims.    

bernieyorks
Whizz Kid

RE the above. The last line should read "does NOT endear customers...." 

spiderbore
Team Player

lets say you see a garage advertising fuel for 50 p a ltr . everyone would go for it. but when you got there they said the fuel is 50p a ltr but to use the pump you have to pay £1 a ltr then it would not be the bargain you thought it was. it would not come as a suprise that the garage was owned by talktalk would it.

 

bill

 

 

 

spiderb
Gliwmaeden2
Community Star

They are all playing this game these days - don't know why, as it leaves a bad taste in the mouth.  Not good practice.

 

You get the same when trying to buy tickets for cultural events......with the usually unavoidable "booking fee" added on. What does a ticket do other than book you a seat or let you get into an event? They are all a load of cheats, and they seem to be learning new nasty tricks from each other which we are then expected to simply accept as "normal", rather than bad practice. 

Gliwmaeden2
Mozaic1979
Team Player

There has been no price rise, I also took out this one-off offer in August 2017 for 18 months at a discounted price of £8.50 instead of the usual £34.00.

 

This period was made clear both on order and when logging into my account/bill late 2018 to check when it was due to expire, due to this I cancelled early Jan 19 to ensure that I did not have to pay the normal rate.

bernieyorks
Whizz Kid

My point is that they must have been making something on the reduced price - they are making nothing at all if you cancel. The critical factor is what Sky charge TT and other providers, which will be secret.  

BUT the increses on any time phone calls and the TV box were real enough and led people to cancel everything but the core broadband. The free mobile went to £3 and then is being scrapped. BUT the advertising says that the price is fixed. To most people "fixed" means you pay the same each month for the same sevice. That is not the case - if you keep the same service you pay more.

As a shareholder I think the stategy is wrong - and it appears the same to other shareholders - the price fell sharply on Friday. One reason is that the the number of customers rose by 148,000 over the review period but the revenue per customer fell. As I saId people, are cancelling the boosts with increase prices and reverting back to just the central broadband - including me. Before I was paying nearly £40 including the Sky Sports and any time calls but now I am paying £23.50. this can only mean TT make less profit from my account, not more as they intended. 

And the advertising is basically dishonest. 

ferguson
Community Star

As a shareholder you really should have a better understanding of how capitalism works. 

bernieyorks
Whizz Kid

The markets don't like TT's strategy - the shares fell by 7% after the new figure came out. Revenue per customer is falling, for the reasons I gave, and with it profit. 

In what way have I misunderstood the situation? Have the marlkets got it wrong? Are you buying on Monday when the market opens again?   

ferguson
Community Star

Nope, I repeat the question: do you know how capitalism works?

bernieyorks
Whizz Kid

I have degree in Economics. I understand about pricing. TT are losing revenue per customer by a pricing strategy that to my mind, and to that of the market, is wrong. What is your understanding of the situation?  

ferguson
Community Star

I too have a degree in Economics, what a coincidence. Nothing worth boasting about though if you don’t appreciate the fundamentals of how capitalism works. Not nicely, not sweetly, not in the interests of any other than the tiny percentage who stand to benefit. So picking on any particular business and any particular practice is blowing in the wind.

John_G
Problem Solver
Ah, @bernieyorks it’s your fault revenue per customer is falling then. Reinstate those boosts and give TT a helping hand. (-:

TalkTalk give different reasons to you for the fall in ARPU. They say it’s because new customers are coming onboard at lower prices and there are (a diminishing number) of customers moving from legacy to cheaper fixed price contracts.

Also, profit isn’t falling - EBITDA is forecast to increase this financial year, although less than previous guidance indicated, hence the share price fall on Friday.

TalkTalk are in a brutal market and many of their competitors have deeper pockets than they do. It’s been expensive to bring the new customers onboard. The challenge is to get more money from them without them leaving. Maybe an extra £4 a month somehow...

That’s why the previous management liked quad-play. It made customers “sticky”, you could push the price up and it was more difficult for them to switch. If you just have phone / broadband you can pay about £11 a year after cashback hopping from TalkTalk to PlusNet which is no good for ARPU.

TalkTalk have 2.3m customers on the fixed price plans. They’ll all get the £4 TV charge. That’s £110m a year in revenue with minimal cost. Yes, you’ll get some cancellations but how many? You may not like it as a customer, but as a shareholder I’m not sure if it’s bad news for you.

bernieyorks
Whizz Kid

My view is that incresing prices and pretending you haven't is not going to work. What is especially annoying is sending emails that pretend that it is all done to make the sevice better. 

THe TT model worked best when it was seen to offer better value than others, at least in my eyes. 

I don't have any figures for people cancelling boosts and now the TV box but I expect it will incresese. Not everyone notices these things for a long time, I know a girl who had 2 insurances on her car for almost a year, having moved companies and not cancelled the first renewal. 

I will sell the TT shares when I can do it without making a loss as I disaaprove of the current strategy. I sold Morrisons for the same reason when they started opening Halal butchery sections in some stores. You can't stop them doing these things, but you don't have to be part owner. 

I also expect that 5g may well put the whole concept of landbased delivery systems under pressure and force down prices. I live in a rural area where fibre to each house is unlikely, but faster and faster transmission using upgraded mobile systems is probably certain. 

bernieyorks
Whizz Kid

Capitalism is far from perfect. But the alternatives have brought poverty and tyranny and even strvation to a lot of people in the former Soviet Union, China, and now Venezuela.   

ferguson
Community Star

I am not discussing alternatives, I am just pointing out the futility of expecting different behaviour from a capitalist enterprise.