Are you paying a Loyalty Tax on your broadband?

If you’re with any of the Big Four broadband providers – and, frankly, most of the little guys too – then it’s almost certainly time to switch. Why? Because it’s highly likely that you are being charged a Loyalty Tax.

And the time to switch is NOW, before they hit you with this year’s tax on April 1^st.

If you’re a Sky customer and you’re stuck in a contract, you need to act even sooner, before March 20^th. You see, this charge is so unfair they’ll actually let you break your contract without penalty, but you have to tell them within 30 days of them notifying you on February 18^th this year.

But first, let me take a step back and explain.  

April means one thing in Broadbandland: Annual Price Rises

When you joined your broadband provider, you almost certainly signed up to some kind of deal. I say this with confidence because this is how 99% of providers operate: they lure you in with a teaser rate, only available to new customers.

What you also sign up to with those deals is an annual price rise.

Tucked away in the small print, there’s a line outlining how your bill will change every April, even while you are in contract. That means that if you sign up to a new provider today, you might be paying more than you were advertised in less than 30 days’ time. Misleading is an understatement.

It’s hard to believe it’s legal, but it’s there in black and white and unsuspecting customers have no choice but to agree to it. That’s what makes it so sneaky.

The Sinister Economics of Annual Price Rises

Broadband providers used to increase their prices using a set formula every year: the rate of inflation (measured by CPI or RPI) plus a set percentage (usually 3.9%). If it sounds confusing, it’s because it is; it’s always been deliberately opaque so that customers don’t notice or understand. That’s why Ofcom stepped in last year and forced everyone to advertise the exact ££ amount they were increasing by during a contract period. Now most providers up your bills by £3-4 annually, which is often more than a percentage increase would have been.

And I’ll say it again: they happen every April. That means the longer you stay with any provider, the more you pay to stay a customer. And what are you getting for that increase? Precisely nothing. It’s the exact same broadband you were paying for yesterday, the same basic Wi-Fi, occasional service outages, and the same horrible customer service. You just pay more for the privilege. That’s why we call it a Loyalty Tax.

Changing your broadband seems like a hassle (it’s not) and Big Broadband providers rely on that misconception. That, and the fact that most customers will weather a small increase every year and never stop to think about the enormous increase they’re paying over time. It’s time for that to stop.

The only way to avoid this Loyalty Tax is to change providers to somebody who doesn’t operate like this.

Rebel hasn’t raised prices in FOUR years

Since we founded Rebel, we have never raised our prices. Instead, we are actually lowering our prices for all new 12- and 24-month contracts. And no, we won’t be adding a few quid to those rates halfway through that contract. That’s not how any agreement between provider and customer should work in our book.

We always knew we wanted to do things differently. To us, that means two things:

• A premium experience: Wi-Fi that actually works and customer service that’s there when you need it.
• Price certainty: we don’t trick our customers with one rate, only to nickel and dime them later.

We are not always the cheapest provider out there, because we give you more for your money. And with Rebel, what you see is what you get. You won’t have to shop around or renegotiate every 12 or 24 months, because we’re here to provide an exceptional broadband experience without screwing over our customers and hoping they don’t notice.

If you want to stop paying Loyalty Taxes, it’s time to think differently about your broadband and what you pay for it.

It’s time for a Rebellion.