It’s little more than a marketing ploy designed to lure the customer into making larger payments later once the initial contract period has ended.
If one looks at the cost of 900 mbps against 500 mbps after 2 years, the future monthly payments can be significantly higher once the so called inflation linked rip off £4 a month increase is added on. And the annual £4 a month inflation linked price rise is a rip off because the base point price for new customers is always far below what existing customers pay because that’s the only way ISP’s can lure new customers in. The people who pay the most are always those that for some reason known only unto themselves, do nothing and just keep paying exorbitant amounts of money every month essentially supporting new customer deals. ISP’s love those customers.
So by offering that £1 a month increase for a speed most people probably wouldn’t benefit from anyway, customers might be convinced that they’re getting a great deal. I’m currently in the same position, 500 mbps but with the £1 a month extra for 900mbps, tempting, but only on the condition that I renew on a two year contract. Then, at the end of the contract, will I as the customer be bothered to renegotiate? or, change ISP for a better new customer deal. Personally, I choose to sit my current two years out and switch ISP because the savings over the next two years will be significant. Effectively as things stand, I’m still paying the same monthly amount as I was 5 years ago 18 months into my current contract.
It’s nothing more than smoke and mirrors marketing designed entirely to increase ISP profits. Some customers fall for it, some of us cynically see it for exactly what it is.
