Freeserve does the inevitable
Freeserve has now raised its prices following the announcement about its intention to do so a month ago. There has been a rise in both the USB installation from £150 to £175 (incl. VAT) to bring it into line with BT Ignite's installation costs; Freeserve also increased the monthly rental price from £39.99 to £49.99 (incl. VAT) which allows them to make a marginal profit on each customer.
Other ISPs expected this price rise to happen at some point. BT Openworld, the UK's largest ADSL provider has already admitted that it is seriously considering raising its prices as its business plan revolving around revenue from its broadband portal, have not surfaced. They do still remain the cheapest provider of 500kbps USB ADSL services.
The price changes do not affect existing contracts, although we are not aware what happens when your 12 months is up. [s]