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BT wholesale price hike.

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BT wholesale price hike.

Hi I was wondering if PN have an offical position on the recent BT wholesale price hike. Many small isp's are claiming this will cause them financial ruin. I understand PN is bigger than some of these isps but I was wondering what knock on effects we would be looking at.
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BT wholesale price hike.

I can't find the link off hand, however, PlusNet have already stated there will be no effect to them.

The BTW price rises are in responce to a Oftel ruling, and only relate to the old charging model. plusNet have moved over to the newer CBC based model, which was inharmed by the price changes.
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BT wholesale price hike.

ahh good to know Smiley cant be having my favorate ISP getting in trouble. Its funny though isnt it, Ofcom are supposed to help and support competion with the end result being better and cheaper products, but here they seam to have done the oposite.
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BT wholesale price hike.

It depends how you look at it. If you only look from one side of the fence, it does look that way.

The Oftel rulling is based on a financial model called the MST (Margin Squeeze Test). It is designed to calculate what price IPStream priducts should be priced at, such that the competition can make a profit, for offering a service somewhat similar to IPStream (quality), using DataStream.

DataStream is forwned upon by many, never took off fast, was predicted to fail when it did, and all but has been announced as a failure by many companies (PlusNet had the DSL Connect packages on DataStream, via tiscali, they vanished them quietly).

As you can see, on the other side of the fence, Oftel was helping fair competition, by making sure DataStream providers have a fair chance.

Although DataStream has a doomed future (not a certain future at least), it will have to remain available to those who want to use it, otherwise Oftel will paddy some more. Thus, prices can't be dropped back down.

There is some good news though. IPStream Home 500 failed the FST too, but was saved from price increases, by decreasing the cost on DataStream. But what is quite obvious based on the very high omout of the increases involved here, is that you couldn't decrease DataStream enough to save face on the prices hikes.
Community Veteran
Posts: 14,469
Registered: 30-07-2007

BT wholesale price hike.

The price increase only applies to ISPs using the old pricing structure. It does not apply to the new capacity based charging (CBC) now used by PlusNet - this is how they have been able to reduce the prices of the new broadband home products.