Sky broadband to be increased by five pounds

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Sky have made the risky decision of creating a huge hike in their service charge during a difficult financial environment.

The increase will be five pounds, and will be across all their broadband packages. Interestingly, Sky are only increasing the price for people who will not signup for their Sky Talk telephone service.

It's quite a risky strategy, because, most Internet Service Providers are cutting their prices due to the lowering of VAT from 17.5% to 15%.

Both Sky and AoL have been criticised by consumers for their hard sell approach for their telephone services. Both ISP's have made a point of forcible emailing, telephoning, and coaxing new and existing customers.

Perhaps it comes as no surprise Sky have raised their prices. They recently won awards from BroadbandChoices and uSwitch for 'Good Value for Money'.

Which is maybe an indication that Sky were running at a loss to entice new customers, but once a certain quota had been filled they increased the price. Relaying on the fact most of their customers will not wish to go through the timing consuming process of changing ISP's.

It's a common business practice by large companies, lower prices to send the competition out of business, then takeover what's left and hike the price.

That being said, Sky Talk is quite an attractive package. Providing free calls at the weekend and evenings, it only costs ten pounds per month.

The rental charge is only slightly more than BT's. A statement from Sky claimed it will have little effect on it's existing customers, because most of them are already members of Sky Talk.

We will have to wait and see if Sky suffer any repercussions from disgruntled customers, who wish not to be monetarily *forced* into signing up for more services than they originally intended.