TalkTalk has changed pricing for all of its broadband bundles, merging the cost of line rental with the Internet service for the first time.
As well as making it easier for customers to calculate monthly costs, TalkTalk is also committing to a price fix for the full length of its contracts, insulating customers from any mid-contract price rises.
The cherry on the top of this seemingly well-iced deal cake comes in the form of a customer loyalty scheme which means that existing TalkTalk punters can switch to a newer, cheaper deal, if there’s one available.
It’s designed to stop loyal customers from feeling short changed by attractive bundle deals intended to entice new subscribers.
By doing so you're essentially starting a new contract with TalkTalk (recontracting, in other words), which means you're signed up for another 18 months. While this is good news if you're a homeowner or you plan on sticking around at your current address, it's less good news for short term renters, like students.
TalkTalk’s consumer managing director Tristia Harrison said: “TalkTalk is changing. Nothing matters more to us than our customers and doing right by them is the right thing for our business. We’ve listened hard to what they’ve told us and we’re acting on it. People are fed up of confusing packages and loud advertising, they’re frustrated with deals which shoot up mid contract, and they hate seeing the best deals saved for new customers.”
It’s a smart move from the budget-conscious ISP, which has fought hard to shake off the stigma associated with last year’s well publicised hack.
Earlier this year telecoms watchdog Ofcom and the Advertising Standards Authority (ASA) ruled that all UK ISPs were no longer allowed to list the cost of line rental as a separate charge to the Internet service, on the grounds that they're confusing. Until recently, it's been common to see a cheaply priced broadband service advertised in a big, loud font, with the separate line rental charge advertised elsewhere in much smaller lettering.
ISPs have until the end of the month to repackage their services. As well as having to merge broadband and line rental prices, greater prominence to contract length, set-up costs must be made, with less emphasis placed on introductory offers.
The only slight snag about this new move is that folks who were fond of taking advantage of line rental saver deals - where you'd pay for a year's worth up front and usually save the equivalent of around two months' worth of the standard rate - can no longer do that.
TalkTalk’s got out of the gates early with its merged prices and brought some additional perks to the table. Now it's up to the rest of the industry to respond.
Update: This piece has been updated to clarify TalkTalk's position on recontracting.
“BT Artbox - Money Box” by Karen Roe is licensed under CC BY 2.0.