Business
Sunshine Arthur
Digicel customers will soon see an increase in the cost of some internet and TV plans as the company announced it is raising the prices of three of its more popular packages.
Digicel said the price adjustment is due to increased content costs from international suppliers and the growing expenses related to off-island internet traffic, specifically Android TV boxes, Netflix and other streaming services.
But customers can also expect a significant reduction in the cost of four of the company’s faster speed packages and the introduction of two new plans.
Digicel’s head of public relations, Colin Greaves, told Newsday on Wednesday, “There is an increase in three of our plans and that increase is between four and five per cent – it is very minimal.
“The reality is that we, from a business perspective, absorb the cost as much as possible and only in the very end when we can no longer afford to do that, based on it starting to affect our ability to invest in our network further, we do a price adjustment.”
He said continued investment in the company is necessary to preserve the quality of the connection customers receive.
“What many people also miss is that when Netflix and these different programme operators start broadcasting in HD and 4K quality, it puts additional strain on the company.
“I think it was estimated that Netflix has 200,000 customers in the country, so when you think of those people trying to watch a movie in 4K quality and it starts buffering, they don’t blame Netflix and say, ‘Why Netflix serving me this quality?’ They blame the service provider.
“In order to mitigate those challenges and to constantly give the customers a good viewing experience where streaming is concerned, we constantly have to invest in the network.”
Greaves said the cost of four plans had been reduced by 40 and 44 per cent in some areas.
He added, “What they were looking at in terms of the price-reduction front is that a lot of people have been trying to get on to faster speeds, more bandwidth and things like that. But in the past we found that those higher-value plans were a bit prohibitive, so what we would have done is made faster internet speeds more affordable.”
The price increase will take effect on June 1 and be applied on every billing date after.
Since the proposed increase, customers have been notified via text message, e-mail, and the company’s website.
The company’s two new plans are fibre 1000, for $750, and modern fibre 1000, for $800.
Price increases:
Fibre 200 plan will go from $305 to $320
Modern fibre 200 plan will go from $325 to $340
Modern fibre 200+ plan will go from $390 to $410.
Reduced prices:
Fibre 350 plan will drop from $745 to $465,
Fibre 500 plan will drop from $885 to $500
Modern fibre 350 plan will drop from $745 to $465
Modern fibre 500 plan will drop from $885 to $600
