Not such a happy new year for Gigaclear punters as prices to go up

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Gigaclear will increase its monthly charges from 1 January 2015. The ‘pure’ fibre optic broadband provider is the latest to join the now almost traditional end of year round of price hikes, joining BT, the Post Office, Sky, TalkTalk and Virgin Media.

The cost of all Gigaclear packages will rise by 4.8%, with the Home 50 Unlimited up to 50Mb package increasing from £37 to £38.80 a month and the Home 100 Unlimited up to 100Mb package rising from £42 to £44 a month.

It refers to its broadband as 'pure' fibre because it specialises in fibre-to-the-premises - or FTTP - broadband, which means only fibre optic cable is used to connect you to the internet, rather than the combination of fibre optic cables and slower copper wire or coaxial cable the major providers in the UK use, making it much faster.

However, Gigaclear needs to price its packages in a way that attracts private investment as it relies on this to build networks for rural communities - its business model works around finding gaps in the national roll-out of fibre optic broadband by BT and the government.

While you're unlikely to be fussed about that if you're a Gigaclear customer that's about to be hit with bigger bills, to be fair to the provider it's been aroundfour years since it last increased its prices.

Gigaclear has said itsprices and packages are "transparent" compared to those of other providers. That's because you don't need a landline to get Gigaclear broadband - so you don't have to pay line rental - and it's totally unlimited, so there are no extra charges for usage.

In a statement, Gigaclear said: "We are all sold on the low monthly cost for broadband, but in reality your bill is usually made up of another three or four additional monthly costs, which when combined amount to a much higher bill. With Gigaclear there are no monthly surcharges or extras - the price you see is the price you pay."

If you're a Gigaclear customer and you're not prepared to pay the higher prices, the good news is that, providing you signed up to your package on or after 23 January, 2014, you have 30 days from when Gigaclear notifies you of the rise to cancel your contract without being charged for terminating it early.

Sources: Financial Times, Gigaclear, ISP Review

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