Virgin Media has raised its annual price increases for its broadband and TV packages from £3.50 per year to £4. The increases apply to new and re-contracting customers but do not affect those currently in contract.
It means once you begin a new broadband or TV package with Virgin Media, your bill will increase in price by £4 each April after you start the contract. This applies to all the firm’s 24-month plans.
The changes come as Virgin Media simultaneously updated its broadband and TV bundles to include faster speeds, Netflix for free with some packages, and Sky Sports in HD as standard.
“Customers taking one of our latest packages, which offer fantastic value including Netflix as standard on all TV bundles and Sky Sports in HD at no extra cost, will see their prices rise by £4 a month each April,” a Virgin Media spokesperson said. “No prices are changing now and no changes are being made to existing customer contracts
“This 13p a day rise represents excellent value for connectivity customers use more than ever and is greatly outweighed by the £5m we invest every single day into our networks and services to ensure we continue to provide the fast, reliable connectivity our customers expect and rely on.”
The firm said the lowest broadband speed now available with its TV packages is its M250 service (reference to 250Mbps download speeds), an increase on the previous default.
Its standalone M500 and Gig1 services (500Mbps and 1Gbps) have stayed the same price for new contracts at £33.99 and £38.99 respectively, but now include Netflix Standard with Ads for free, a service that costs £5.99 per month from Netflix.
Virgin Media opts for a blanket price rise across all its services, including broadband and TV bundles, rather than combining two separate increases for the broadband and TV products.
“Virgin Media’s new price increase comes as the provider refreshes its line-up, including offering Netflix with ads as standard on its plans over 500Mbps and faster speeds with TV bundles,” said Ernest Doku, Uswitch broadband expert. “For customers considering taking out one of these more premium plans, this added value may offset the £48 yearly price rise.”
Sky Sports, if included in any bundle, is now offered in HD as standard, an add-on that previously cost £7 per month. New customers can also add Talk Anytime to bundles for £8 per month, down from £15, offering unlimited landline calls at any time of day to UK landlines and mobiles.
Despite Virgin Media’s evidence of added value in these changes, the firm’s increase to £4 for its annual contract price rises has received criticism.
Consumer watchdog Broadband Genie said the increase is “almost double the limit households would have faced under the old Ofcom inflation-based rules.
“Previously, under the old inflation-linked system broadband providers would have been restricted to price rises of around 8.5% given the current RPI figure. However, since Ofcom introduced new regulations just eight months ago, providers have been able to push through bigger hikes – and it’s now clear that Virgin Media is wasting no time when it comes to squeezing their customers on price.”
It warned households could face substantially increasing contract price rise costs in the next five years.
“We warned this would happen, and now it is. Consumers are being squeezed harder than ever,” said Peter Ames, Broadband Expert at Broadband Genie.
“The only way to protect customers is to outright ban these absurd mid-contract price hikes. Until Ofcom takes action, we urge all consumers to check whether they’re still in contract. Our records prove that one in three households is free to switch right now, and with many providers offering competitive new customer discounts, this could be the best opportunity to protect your budget before further price rises kick in.”
Virgin Media is not alone in increasing its mid-contract price rises, with BT, EE and Plusnet also recently raising costs.
“Ofcom has never restricted how much providers can raise prices. That’s because the UK has competitive telecoms markets, and last year, average prices for broadband bundles fell,” said Cristina Luna-Esteban, Ofcom’s Director of Consumers and Retail Markets.
“Our protections make sure consumers can shop around with confidence and make an informed decision about which package is best for them.”