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BT's broadband price rises?

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BT's broadband price rises?

http://news.zdnet.co.uk/communications/broadband/0,39020342,39162784,00.htm

"The monthly cost of the products in question, BT IPStream Office 2000 and BT IPStream S 2000, are both now being increased by BT by £14 per month. This will effectively alter the margin by £15 per month, when the £1 per month Datastream reduction is also taken into account."

Is the prices going up for real?
6 REPLIES
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BT's broadband price rises?

Yup.

Provides on the IPStream Office range, and Home 500 failed what is knows as the MST (Margin Squeeze Test).

This is a financial equasion, designed to see if DataStream ISPs could work at a profit if providing the same service.

Home 500 failed, however, BT reduced costs in the DataStream network, to account for this. The Office range of products couldn't quite pass the same way, due to the actual amount of change needed (evident in the size of the price hike).

Luckily, these price rises are only going to effect what is known as the Classic Billing Model. A new CBC (Capacity based Charging) and soon to be released UBC (Usage Based Charging - Soon as in early next year), allready account and pass the MST (iirc).

According to PlusNet, there will be no price changes as a result of this.
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BT's broadband price rises?

Am on a an IPstream office 2000, am not sure if thats a Classic Billing Model?

Well it must be, because the CBC nor UBC is out yet, so when the new charging bill becomes available, i don't see how the my billing can change from the current one to a new one, unless i signup for a new Product or how else can the change can take place for me?

Am getting the impression that if i want to stay on this product and lets say the bill goes up by another 14 pounds, if i want the privilege of 20:1 conection & unlimited download of a office product am going to have to pay for it, or is it PN can handle the extra cost?

I think the (Capacity based Charging) & UBC (Usage Based Charging) is a good thing, i don't do a lot of downloading through the day or on the internet much, but i still want the unlimited download feeling of freedom, cause thats what ADSL is about, speed and any amount of it.
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BT's broadband price rises?

CBC is available now, and Broadband Home 2000 uses it.

As proof, the wholesale cost before VAT for Office 2000 (Home 2000 currently runs on Office 2000 on the CBC model, until Home 2000 is finalised) is above that at which PlusNet sell it.

That is before the price rises have been taken into account and remember, PlusNet need to add there own costs onto the wholesale cost.

UBC is not available yet.
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BT's broadband price rises?

so who will it effect in nice plain english not ecconomic waffle :p
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BT's broadband price rises?

None of the customers at PlusNet, according to PlusNet.
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BT's broadband price rises?

thanks acarr.