Feeds

NewNet braces for customer losses

ISP's hefty price rise angers punters

HP ProLiant Gen8: Integrated lifecycle automation

NewNet's CEO Peter Coates-Buglear says the company is likely to lose "quite a few" heavy users due to its recent price rises but believes that is better than restricting bandwidth on the sly without telling customers. Subscribers to some of its services will see prices go up by nearly 60 per cent.

The Register received emails from disgruntled customers protesting NewNet's decision to hike prices. The cost of its HomeB service jumped from £21.95 a month to £34.95. Punters were told before Christmas and complained long and loud on forums like thinkbroadband.com - previously known as adslguide.org.uk.

Coates-Buglear spent much of New Year's Eve on the site answering customer complaints. He said the company had given out a lot of MAC numbers but few have been activated yet: "We'll see what happens at the end of the month.". He said they chose Christmas deliberately so customers would have time to decide what to do.

Coates-Buglear told the Reg: "600 new HomeB customers have totally filled one of our 155Mb pipes. We've tried to be upfront about what we are doing rather than restricting bandwidth quotas or packet shaping but from a financial point of view we had to do something. There is a general trend for customers to use more and more bandwidth but the last couple of months have been particularly bad. We've got a good reputation among heavy users and to be honest that's worked against us. We've gained people from some of the ISPs which have gone out of business and also from PlusNet."

He said it was a difficult balancing act but he hopes not to increase prices for the next 12 months.

As bandwidth demand increases broadband providers are stuck between a rock and a hard place - they either raise prices or restrict bandwidth neither of which will endear them to their customers.

What do you think ISPs should do? Answers to the usual address please.

For broadband advice go to www.thinkbroadband.com/

The Power of One Infographic

More from The Register

next story
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.