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Price Change for M1 20CN customers?

wisty
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Price Change for M1 20CN customers?

Does this
http://www.bbc.co.uk/news/technology-14215501
mean that those of us stuck in the sticks with no chance of 21CN (let alone whizzy FTTC) can look forward to the kind of pricing those in the fast lane get?
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Re: Price Change for M1 20CN customers?

No
Quote
From mid August until March 2014, Ofcom has ruled that BT must cut its rates by 12% below inflation per year.
which means a reduction in wholesale prices of about 7% per year which I would guess is about 50 pence or a total reduction of £1.50
The interesting bit is that Market 2 customers are going to be clobbered as the price BTw are allowed to charge is fixed by OFCOM to allow the LLU providers to move in
Gel
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Regulator forcing BT Broadband wholesale £ down

Regulators have insisted on BT making a big cut in the price of its flagship wholesale broadband product, in a move that should lead to cheaper internet access for consumers living in rural areas.
Ofcom, the telecoms watchdog, on Wednesday confirmed that BT must over the next three years make a significant cut in the price of the wholesale product that is used by its rivals to supply broadband services to consumers and businesses in the countryside.
However, BT’s shares rose almost 1 per cent to 194.3p on Wednesday because Ofcom’s statement was slightly more favourable to the UK’s leading fixed-line phone company than expected.
Ofcom is concerned at how consumers in rural areas pay more for broadband compared with their counterparts in towns and cities, partly because of reduced competition between telecoms companies in the countryside.
To try to increase competition, the watchdog has concluded BT must cut the price of its wholesale broadband product by 11 per cent below the rate of inflation during each of the next three years.
“Ofcom expects these price cuts to generate more competition between retail internet service providers and to lead to cheaper retail prices which will benefit consumers,” said Ofcom.
BT said revenue at its wholesale unit would be reduced by “low millions” due to Ofcom’s decision.
However, Will Draper, analyst at Espirito Santo, said the impact on BT could be much greater if its retail unit felt obliged to cut its prices because of increased competition in rural areas.
Ofcom also set out final details of the financial calculations it is using when setting price controls for all BT’s wholesale products.
In March, the watchdog estimated the weighted average cost of capital at Openreach, the BT subsidiary that maintains much of the company’s fixed-line network, had fallen to 8.6 per cent in January, from 10.1 per cent in May 2009.
BT then disputed Ofcom’s estimate, and on Wednesday the watchdog concluded that Openreach’s cost of capital was 8.8 per cent.
BT described the revised figure of 8.8 per cent as an excessive reduction, but declined to say whether it would appeal against Ofcom’s decision.
Openreach is expected to use the 8.8 per cent figure when it publishes a price controls regime for BT’s other wholesale products in the autumn.
Ofcom is expected to require real terms cuts in the Openreach products that enable companies including British Sky Broadcasting and TalkTalk to take control of BT’s landlines so as to supply phone and broadband services to consumers.
John Karidis, analyst at MF Global, said Ofcom’s estimate of 8.8 per cent for Openreach’s cost of capital, compared with 8.6 per cent previously, was a “slight positive” for BT.
From FT
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Re: Price Change for M1 20CN customers?

Two topics merged and moved to Broadband and Routers as it doesn't quite fit into Accounts and Billing
jojopillo
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Re: Price Change for M1 20CN customers?

HI folks,
Although we welcome the move, we already offer £6.49 to 78% of households. We also wont be beaten on price for stand-alone broadband, so if anyone can offer a better price we will beat it.
Jojo Smiley
wisty
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Re: Price Change for M1 20CN customers?

Quote from: Joanne
we already offer £6.49 to 78% of households.

Thanks Jojo - I know.
Its the 22% I form part of, and we (or a significant proportion of us) seem destined to pay TWICE that each month for EXACTLY the same service (actually worse because we get a maximum of 8Meg  - no 21CN, no FTTC).
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Re: Price Change for M1 20CN customers?

There is currently little or no competition for Market1 customers, I dont why Ofcon think this will change anything, did Ofcon not understand that all the Market1 people can only get ADSL via a BT only exchange, thus there is no competition, sure if one of them reduces the costs by 50p, the others will follow, but thats all we are talking about here ... 50p.
Sure, it made good headlines, making Ofcon look good, but not much good for the whole.
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Re: Price Change for M1 20CN customers?

Oldjim
I think there is a lesson in writing the thread titles in English  Wink
I understand what "Rural broadband charges" is about but  I never opened  "Price Change for M1 20CN customers?" because I cant guess what it is about  Crazy
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Re: Price Change for M1 20CN customers?

Actually you aren't quite correct in that I am rural but on Market 3
paulg123
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Ofcom forcing bt to reduce prices for other ISPs

I heard this on the radio today and was wondering where I live my exchange can only get 8meg using the bt product that plusnet use for me, would this change result in my broadband being cheaper?
http://m.guardian.co.uk/money/2011/jul/20/rural-uk-cheaper-broadband-ofcom-bt?cat=money&type=article
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Re: Price Change for M1 20CN customers?

Merged with existing thread
Note that this is how BT are getting round it http://www.thinkbroadband.com/news/4748-bt-wholesale-to-extend-its-adsl2-to-90-of-premises-by-spring...
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Re: Price Change for M1 20CN customers?

From Jim's link One further improvement is a trial that is underway in some WBC areas to make IP Profile updates a lot faster, so fast as to be effectively transparent.
Quote
One further improvement is a trial that is underway in some WBC areas to make IP Profile updates a lot faster, so fast as to be effectively transparent.

Does this sound like BT are trialling SRA?
Sorry to go a little off-topic but it does come from this link in the previous post.
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Community Veteran
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Re: Price Change for M1 20CN customers?

Nope - it just happens much faster on a resync
This has been covered here http://community.plus.net/forum/index.php/topic,97746.0.html and this explains it http://community.plus.net/forum/index.php/topic,95625.msg806106.html#msg806106
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Re: Price Change for M1 20CN customers?

Quote
Nope - it just happens much faster

Thanks for the clarification, I missed that one.  I'll let this thread go back on-topic now.
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
Opinions expressed in forum posts are those of the poster, others may have different views.
paulg123
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Re: Price Change for M1 20CN customers?

Quote from: Oldjim
No
Quote
From mid August until March 2014, Ofcom has ruled that BT must cut its rates by 12% below inflation per year.
which means a reduction in wholesale prices of about 7% per year which I would guess is about 50 pence or a total reduction of £1.50
The interesting bit is that Market 2 customers are going to be clobbered as the price BTw are allowed to charge is fixed by OFCOM to allow the LLU providers to move in

I'm Market 2 so does this mean sky might possibly get there llu equipment in my exchange for some 20meg broadband?