Thinking of leaving BT as new customers get better...

I am out of commitment with bt and tried to sign up for 12 months and avail of new deals, whilst downgrading from infinity 2 to infinity 1. As an existing customer of 20+ years I am quoted more than a new customer which is unfair.

The fact that other ISPs may do the same thing doesn't make it wrong. BT along with all the other ISPs are providing a service in order to make money.
It does make financial sense to the company to offer deals to attract new customers rather than to give discounts to existing customers. There reason for this is the vast majority of existing customers do not check around for better deals and having found them, move their business. So why would any company give a discount to people who are going to stay anyway.
Some people may say "what about customer loyalty" There is no such thing as customer loyalty, it all comes down to the service provided and the cost. The customer falls into one of three groupings a) they are happy with the service and are prepared to pay for it. b) they are not and will move. c) apathy. Loyalty has nothing to do with it.
For everyone who moves because they get offered a  better deal else where there is probably at least the same number who moves to BT for the deal they are offering. It balances out.
If it did make more financial sense to offer discounts to existing customers you can bet that it would be happening.

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