Broadband providers are reconsidering how they recover the cost of signing up and connecting new customers, creating a more relevant operating environment for Cerillion’s billing and customer management software.
BT and EE introduced a £30 activation charge for new home broadband customers from 31 July 2026, while Plusnet introduced a £20 fee. The move reverses a period in which many providers absorbed installation and equipment costs and recovered them gradually through monthly charges.
The change points to rising pressure on customer acquisition economics. Providers face upfront costs when connecting a new customer, including provisioning, marketing and equipment. Charging an activation fee allows part of that cost to be recovered immediately rather than relying entirely on future monthly revenue.
Hardware costs are one factor. Broadband routers are becoming more advanced, supporting mesh networking, cybersecurity, smart home devices and larger numbers of connected products. More capable equipment increases the cost attached to each new broadband connection.
Cerillion also highlights higher memory costs. Demand from AI infrastructure has increased pressure on DRAM and NAND flash supply, while manufacturers have focused more heavily on higher-margin products for AI servers. That has contributed to higher costs for the consumer-grade memory used in broadband equipment.
Providers have several ways to respond. They can reduce discounts, increase recurring prices, cut promotional offers or accept lower margins. Activation fees offer another option by bringing forward part of the revenue linked to customer acquisition.
Changing broadband provider has become easier. One Touch Switch, introduced in 2024, reduced the friction involved in moving between providers. Easier switching can shorten customer relationships, making it more important for operators to recover acquisition costs earlier.
This increases the need for flexible pricing and product systems. Broadband providers may want to introduce or remove activation charges, change hardware options, offer managed Wi-Fi subscriptions, support customers using their own routers or target discounts at specific customer groups.
Those changes depend on software that can support frequent commercial adjustments without major technology projects.
Cerillion’s BSS/OSS platform is designed to address that requirement. The company provides systems that allow communications providers to configure products, apply charges, manage customers, support billing and control service delivery from an integrated platform.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
