In a move squarely aimed as retaliation for yesterdays Wanadoo price announcements, Plusnet is dropping the entry level price of its ADSL services with effect from Thursday 26th August.
The products all come with a choice of monthly or annual contracts, the monthly option carries a £70.50 activation fee, and this reduces to £58.75 if you sign an annual contract. A range of hardware is also available at £34.99 to £59.99, though of course you can source your own if you wish.
The autumn is looking like it is going to be a very busy time, with the various price cuts, and the availability to almost all current 0.5Mbps users of the 1Mbps service we are likely to see lots of people regrading their service. PlusNet by retaining the unmetered service also provides peace of mind for those who have no idea of their level of usage, which can often change when you switch from dial-up to broadband.
Predictions of services with no montly fee, still seem somewhat rash, as there is still a base line monthly fee payable to BT Wholesale of £8.40 on the IPStream Home products. Though it is possible we will see a lot more offers of the sort common in North America, with the first month or two of service free. The danger is that if the price is driven too low, many providers may pull out of the consumer market or worse collapse leaving users high and dry, to leave just half a dozen large ISPs.
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