Price increases on contracted plans?

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Price increases on contracted plans?

Kevred

25 posts

Geek

#189416 29-Dec-2015 09:58

So much for contracts, slingshot have sent me a message informing me of an increase though the twelve month plan we agreed to was $94 and has not run its course. This increase though small is to cover the copper rental costs the government have allowed Chorus to increase.

zyo

513 posts

Ultimate Geek

#1458382 29-Dec-2015 10:04

I got the email as well

Hi there,

At Slingshot we have been working hard to offer great value broadband. But a recent government decision means we are going to have to raise prices 95c a month on your broadband plan.

Why? It's because of the extension of the Telecommunications Levy which requires telcos and ISPs to make contributions to the Government. The Government then invests this in things like rural broadband infrastructure. You can read more about it here in our FAQs and on Wikipedia.

The industry expected the levy to decrease, but instead, the government extended it.
A s a result, we have needed to change your monthly charge by 95c.

We never like putting prices up, so sorry about this - but we need to cover our increased costs (and hey, we are all helping pay for rural infrastructure).

You will see this change reflected in your next bill, which you will receive on .

Thanks, the team @ Slingshot

zyo

513 posts

Ultimate Geek

#1458385 29-Dec-2015 10:06

I thought being in a contract means there would be no price increase within the contract period?

sbiddle

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#1458389 29-Dec-2015 10:16

zyo: I thought being in a contract means there would be no price increase within the contract period?

This isn't an increase in the plan cost.

This issue has been discussed in depth in a number of threads on here as all the big ISPs are passing the increase on to customers.

A contacted price can be changed and I'm sure like 99% of contacts there will be a mention somewhere allowing this in the contact itself.

Kevred

25 posts

Geek

#1458390 29-Dec-2015 10:17

Here is a section under Slingshots terms of agreement

3. Charges

3.1 You must pay our charges for the services we provide to you, regardless of whether you or someone else uses those services. We may vary our charges from time to time. If we increase any charge we will give you at least 14 days’ notice. You can always check the latest charges at help.slingshot.co.nz. If you do not agree to the changes, you may terminate the service which is the subject of the changes. If you have a minimum term contract with us, the charges for the Services covered by that contract will not increase until the end of that contract, unless an increase is as a result of a change in the price from a supplier for an input required for your Slingshot Broadband Service.

Yes so it looks like they can charge the extra cost though my provider is UFF not Chorus.

sbiddle

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#1458391 29-Dec-2015 10:18

Here's the Slingshot terms and conditions:

3. Charges

richms

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#1458394 29-Dec-2015 10:26

Is a levy an increase in price from a supplier? I would think not, so if you are on a term their own T&C say that it wont go up, yet they are putting it up.

Richard rich.ms

sbiddle

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#1458395 29-Dec-2015 10:30

richms: Is a levy an increase in price from a supplier? I would think not, so if you are on a term their own T&C say that it wont go up, yet they are putting it up.

The TDL has been in place for many years and the cost built into plans. It'd be very easy to argue this is an input, and the govt a "supplier".

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freitasm

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Geekzone

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#1458457 29-Dec-2015 12:02

I still think if the TDL is charged based on the telco's share in the market then it should be paid by the telcos, not by consumers, otherwise it should be not a Telecommunication Development Levy but a Telecommunications Tax, like GST.

But hey, the geniuses in the Government...

DarthKermit

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#1458458 29-Dec-2015 12:14

^^^

A tax by any other name...

We're with Voda also. $0.99 a month or $11.88 a year.

taenoz

1 post

Wannabe Geek

#1484602 3-Feb-2016 17:17

This is totally unfair for Slingshot increase the agreed-price within the contract length. I'd suggest people to file TSR complaint for telecommunication issue on http://www.tdr.org.nz/making-a-complaint/who-can-make-a-complaint

shortcircuit

86 posts

Master Geek

#1484604 3-Feb-2016 17:24

Power companies do the same thing, especially the "We guarantee our prices won't go up if you lock into x years contract". Their terms exclude any external charges ie when the lines companies put their charges up

I'm pretty sure airlines would have similar exclusions for 'airport levies' etc

mattwnz

20164 posts

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#1484607 3-Feb-2016 17:33

shortcircuit:

Power companies do the same thing, especially the "We guarantee our prices won't go up if you lock into x years contract". Their terms exclude any external charges ie when the lines companies put their charges up

I'm pretty sure airlines would have similar exclusions for 'airport levies' etc

It is such a grey area, and probably not the most customer friendly policies (wonder if the terms would be considered 'unfair'?). I wonder if the Commerce commission has looked into this. I recall they have looked into airlines before, and the add on fees they charge.