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News VAT and price changes in 2011

VAT change

As you are probably well aware, the rate of VAT will be increasing from 17.5% to 20% on 4th January 2011. As our prices are based on VAT exclusive prices this means an increase in what you pay us for goods and services.

The rate changes on 4th January 2011 and is applied to all invoices issued on or after that date. This means your January service invoice will still be 17.5% even though it will be for services for all of January or all of the quarter.

Most customers will see the VAT increase on their February bills.

Price increases

The quality of the broadband service we offer is of utmost importance to us. We aim to maintain uncongested links to BT and Be for broadband service. However this is costly, and it is becoming increasingly difficult.

The quality of service is especially important for our business customers, especially those using voice over IP (VoIP). Over the last month (Nov/Dec 2010) we have, for example, maintained the links uncongested during the business day for 100.0% on Be, 99.9% on BT 20CN and 99.2% on 21CN. Over the last week due to increases in capacity these have increased to 100.0% on BT 20CN and 99.6% on BT 21CN. We aim for 100.0%.

To ensure we can maintain these links as uncongested as possible and continue to provide the quality of service demanded by business and home users alike, we are having to increase the price for broadband units. The increase is 45p+VAT per unit per month. This means the entry level 2 unit tariff will increase by 90p+VAT/month.

We feel this will provide the additional funds we need to keep increasing capacity to BT as needed and maintain the quality of service.

This price increase is for units for February 2011 onwards. This will affect customers billed in advance for the whole quarter at the start of January, but most customers will not see the new price until their February bills, which is the same time as they will see the increases because of the change of VAT.

Where your invoice changes amount, e.g. February bills, new direct debit emails will be sent giving you 5 working days notice of the new amount.

We hope customers understand the importance of providing a quality network whether for home or business, games or voice over IP, however we understand that this may be too much for some customers. You can, of course, obtain a migration code free of charge via the order pages on our web site with 30 days notice. Obviously if we have the opportunity to reduce costs during the year we will.

Feedback

We are obviously interested in feedback and discussion on this on the irc channel.

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