topic Re: Market 1 prices not upfront in Plusnet Feedback

Market 1 prices not upfront

Apprentice — Fri, 28 Jun 2013 15:05:07 GMT

It's commendable that PN have a varying price structure for their BB products based on the market classification of the exchange,
however it's a PITA that the market 1/high cost area prices are not up front with that of the low cost area prices.
(OK I understand from a marketing/sales viewpoint up front cheap prices are eye catching to the masses).
Eventually found the mkt 1 prices down at the bottom of the page in the bowels of the "Here's the legal bit", but is that pricing for BB only or is it BB + calls packages?
BTW how much is unlimited BB + calls (weekend) per month on a market 1 exchange as I can't find that pricing with or without the current half price offers?

Re: Market 1 prices not upfront

pint — Fri, 28 Jun 2013 16:16:24 GMT

Im seeing £19.49 per month for no contract ( ie 1 month rolling)
and 16.49 for a 12 month sign up
Before you take the plunge, it may be worth while checking to see if there are any LLU providers on your market 1 (ahem) exchange as they will probably be significantly cheaper than plusnet - exchange search here http://www.samknows.com/exchange_search
I have tried asking plusnet this : Are plusnet doing anything to apply pressure on offcom to change market classifications on exchanges - no reply.

Re: Market 1 prices not upfront

ReedRichards — Fri, 28 Jun 2013 22:36:44 GMT

Quote from: Apprentice
It's commendable that PN have a varying price structure for their BB products based on the market classification of the exchange,

No it's not. Since Ofcom are sitting on their backsides with regard to reclassifying exchanges, many exchanges that are nominally Market 1 now have LUU suppliers. Many non-LUU suppliers have responded by dropping differential pricing rather than lose out but Plusnet has stuck to its guns and so shot itself in the foot.

Re: Market 1 prices not upfront

x47c — Sat, 29 Jun 2013 07:02:02 GMT

I won't half laugh if OFCOM abandons the exchange structure totally and we end up with a single price - and it is at the market 1 level.
Those on Market 2/3 exchanges will be hopping mad their prices are going to soar
Those on Market 1 exchanges will be incadescent that their prices are not going to plummet.

Re: Market 1 prices not upfront

Anotherone — Sat, 29 Jun 2013 11:40:49 GMT

I'm not sure that Market 2/3 prices would soar. BTw are able to supply services to 20CN Market 1 exchanges with no more overheads than 21CN, but are forced by OFCOM to charge more to the service provider in Market 1 and hence have a greater profit margin.
The market classification certainly needs to be abandoned, it's done it job and is no longer effective. The prices all round will not be at Market 1 levels, there is too much competition in the Market 2/3 exchanges, everyone would start jumping ship to cheaper LLU providers.

Re: Market 1 prices not upfront

Apprentice — Mon, 01 Jul 2013 13:04:14 GMT

Quote
<snip>
BTw are able to supply services to 20CN Market 1 exchanges with no more overheads than 21CN, but are forced by OFCOM to charge more to the service provider in Market 1

It gets confusing as I thought that at the time of introducing the market classification OFCOM wanted BTw to charge less to service providers on market 2 and 3 exchanges to encourage LLU provision within an exchange?

Re: Market 1 prices not upfront

James — Mon, 01 Jul 2013 13:13:35 GMT

Quote
It gets confusing as I thought that at the time of introducing the market classification OFCOM wanted BTw to charge less to service providers on market 2 and 3 exchanges to encourage LLU provision within an exchange?

The idea is that by forcing BTW to charge higher prices on Market 1 exchanges, it would encourage more LLU suppliers to install equipment at those exchanges allowing them to undercut BTW.

Re: Market 1 prices not upfront

Apprentice — Mon, 01 Jul 2013 13:38:40 GMT

Hi James,
Thanks for clearing that up ..... I think

Re: Market 1 prices not upfront

James — Mon, 01 Jul 2013 14:12:29 GMT

Personally (and I should note that this is my opinion not that of Plusnet), I think that the point of the exercise has been productive. However I think it's served its purpose now and it would be in the best interest of the consumer for the restriction to be lifted.

Re: Market 1 prices not upfront

x47c — Mon, 01 Jul 2013 15:04:08 GMT

@Apprentice
The bit your missing out in your understanding is as follows:
You think that when a LLU supplier arrives at a market one exchange encouraged by the possibility of charging higher prices then if the exchange is immediately re-graded to market 2/3 then that advantage will surely have been lost as he can no longer charge the higher prices- or at least under cut BTW.
It only 'works' because OFCOM do NOT regrade exchanges as and when LLU operator arrive.
They only re-grade every now and then (years apart). So the LLU operator has from the time he installs his equipment until the next exchange re-grade to make his 'excess' profits out of the exchange.
This additionally should have encouraged LLU's to get in early to an exchange and not delay otherwise the time span of their profit margin before the next re-grade would be shorter.
In reality of course the excess profits actually in part go toward paying off the capital cost to the LLU operator of installing the equipment in the first place.
So ironically those clamouring for their exchanges to be re-graded as soon as a LLU operator arrives are asking for the very incentive which caused the LLU to arrive in the first place to be removed!
I agree anyway - it has run its course and its time the classification scheme was scrapped.

Re: Market 1 prices not upfront

Ado16 — Mon, 01 Jul 2013 22:27:50 GMT

Market system infuriates me. Whether or not it had a purpose, I suspect - vaguely - that it was just an excuse to milk money. The sooner it ends the better. For instance, I've one lot of relatives living in the dangly bit off the end of SW Scotland - you can understand to a certain extent why they are in Market 1 - but another set of relatives are a few miles outside of Norwich and are also in Market 1? Absolutely bonkers! When the Government bangs on about how important 4G services are etc etc - what they really should be doing is getting the country up and running with decent broadband services!