Virgin Media Increases Broadband Prices by 5.4%

Virgin Media recently implemented a significant speed increase for customers on 50Mbps, 100Mbps and 152Mbps connections to 70Mbps, 150Mbps and 200Mbps. Initially, the speed boost appeared to be a free promotion to encourage more customers to join Virgin Media. However, Virgin Media has admitted there will be a price hike by up to £3.99 per month. Additionally, the line rental fee will also increase by £1 which signifies a 5.4 percent change. The company explained on social media why the higher prices are necessary and said:

“The price changes are put in place to sustain and build on our network to give you even better quality”.

@CJWReddevil Woohoo, great news. It's a free upgrade Chris subject to price increases. Let us know when it kicks … https://t.co/Rw5dPu22jP

— Virgin Media (@virginmedia) November 10, 2015

Virgin Media’s managing director, Gregor McNeil, told The Register:

 “We are doing everything we can to keep prices as competitive as possible. Through the continuing investment in our network we are again upgrading our customers’ broadband speeds and providing unlimited downloads – meeting the growth in data consumption we see.” 

Unhappy customers can cancel their Virgin Media subscription as the increased prices are technically a breach of contract. I think the company has to be extremely careful as consistently increasing the package prices will result in mass cancellations. Faster broadband speeds are vital when you consider the huge data demands with modern gaming, and 4K video streams. However, the packages need to remain affordable or people will simply go for a cheaper, slower option.