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Why is 1MB so expensive?

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Why is 1MB so expensive?

Dear Plusnet Wink

Although I opted for the £24.99 easy start 512K to start with, how come the 1MB line would cost me £39.99! Even AOL is cheaper than that, as are most other ISP's.

Plus, on the home page, it says there is a 2MB line available, but the link is too hard too find :roll: .
16 REPLIES
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Why is 1MB so expensive?

Its 32.99 a month its more expensive if u opt 4 the modem free with it. I pay 32.99 a month as i already had a adsl modem.
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Why is 1MB so expensive?

Oops I got it wrong, It's actualy £44.99!!! Evil

Might as well swap to freeserve and save £10 per month Tongue
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Why is 1MB so expensive?

However it will cost you £99 to break your yearly contract for EasyStart. Plus a migration fee of around £42 before you can start paying the £10 cheaper option.

The higher charges for the easystart products are to cover the activation fee that BT charge which is effectively paid over 12 months. It also covers the cost of the ADSL modem you were supplied with, also paid for over 12 months. This is in addition to the actual cost of supplying the broadband service from BT. Plusnet have a very low margin on all of that.

You are not comparing like with like when looking at other ISP products. It may look cheaper but it is not always once you add up the yearly cost. Remember you are paying for modem and activation costs in easystart, I suspect you are comparing it with a standard wires only 1Meg or 2Meg service. Look at what the cost is for a modem and activation.
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Why is 1MB so expensive?

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="The higher charges for the easystart products are to cover the activation fee that BT charge which is effectively paid over 12 months. It also covers the cost of the ADSL modem you were supplied with, also paid for over 12 months. This is in addition to the actual cost of supplying the broadband service from BT. Plusnet have a very low margin on all of that."


Does that mean that, after a year has expired on Boroadband EasyStart, the monthly cost will go down? That would certainly appear to be the case if BT activation and Modems are payed for over a year.
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Why is 1MB so expensive?

Both Easystart 1Mb and Homeworker pro 1Mb are £44.99 but are totally different animals, Easystart includes Activation, Modem and all the stuff to get you running, whereas Homeworker you have to pay the activation and buy a modem on top of the £44.99, you see, the difference is the contention, Easystart is a 50:1 (BT IPStream 1000 home) connection and Homeworker pro is 20:1 (BT IPStream 1000 Office) you can however get the Activation and modem included in the deal, but the price goes up Sad

The normal price for a wires only install of 1Mb (50:1 ) is 34.99 p/m + a one off payment for the activation fee.. but you have to supply your own modem, its the same with everything i suppose, if you want more, you have to pay more :roll:
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Why is 1MB so expensive?

Thanks Peter for your 'short' answer Wink .

So what you are saying is that we are actually paying for the activation & modem over a 12 month period.

If I upgrade does that mean I have to pay again? I am currently paying £3 extra per month for easystart, so that means on the 1MB easystart I would be paying an extra £10 per month :?:

Would that be £10 per month for 12 months or the remainder of my contract?
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Why is 1MB so expensive?

It would be the remainder of your contract. So should you only have 3 months left, you are only tied for the 3.

I can't remember the easystart regrade fee. Havn't looked into all that yet, though should be very soon Smiley

After the contract is up, it converts to a one month rolling contract.

However, the price does not change once the contract is up. So you pay the higher price for the duration of being on that package. However, there is nothing to stop you converting to ADSL Home at that stage Wink

Though, you will lose Spam and Virus filtering by doing this.,
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Why is 1MB so expensive?

I do think adsl in this country is expensive but thats what u gotta pay 2 get the best
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Why is 1MB so expensive?

The problem is, it is expensive and it most certainly isn't the best.
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Why is 1MB so expensive?

for £ 32.99 i could have 1mb telewest broadband which is cable (fiberoptic cables) which is much much faster than ADSL. but its too late a cant cancel my adsl and go to cable for while Sad

BUT CABLE DOES WIPE THE FLOOR WITH ADSL :lol:
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Why is 1MB so expensive?

Actualy, cable is as much fiber as ADSL is.

Fiber optics carry the backhaul of ADSL data accross the country, to form the BT ATM cloud.

The differance with cable, is that the distance to the property from the RF generator is much smaller than ADSL. As such, the fiber optic is much closer to the property.

There are a few discussions on this in the BT implimentation forum on ADSL Guide. You may want to add your comments there.

And for the record regarding cable beating ADSL pant down.

Cable providers cater for very small area of customers. As such, they can cater more for this. THere is prenty of spare capacity to seach street cabinet, so much more can be pushed through.

However, when you compare the MSO (major service outage) list of ADSL, to that of a Cable provider, cable does seem to have a lot more issues,.
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Why is 1MB so expensive?

I reckon in a year the price of broadband will go down at least 25% because new companys and its getting cheaper..

But then in new zealand you get adsl but its capped.. so maybe capped is next?
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Why is 1MB so expensive?

I think you'll have to pray to get a 25% reduction, despite any competition from cable.
There is still strong demand for Broadband. When demand dries up, then prices will fall. It's simple market forces that dictate how prices will behave.
Community Veteran
Posts: 5,878
Registered: 04-04-2007

Why is 1MB so expensive?

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There is still strong demand for Broadband. When demand dries up, then prices will fall. It's simple market forces that dictate how prices will behave.


Couldnt agree more.

There isn't really any competion for BT at the moment, the cable companies offer very little choice in very few areas and LLU is still in it's early stages. I think until BB techologies are rolled out nationally (or as nationally as they will ever get) there will be little competition at the wholesale level.

Chris