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Pay as you go ADSL

CallumW
Grafter
Posts: 33
Registered: 30-07-2007

Pay as you go ADSL

Hi Guys. Hope you are all keeping well.

I found an ISP recently that offer Pay as you go ADSL and was wondering if you were going to implement a similar pay scheme?

I have tried convincing family to go to F9 broadband and, although it's competitive for fixed pricing, the cost was always too much for their little amount of net usage. But now I found this option they are going to sign up with the other ISP.

Link here: http://www.metronet.co.uk/adsl/paygo

Basically you have a 24/7 broadband connection which costs about £13 per month (inc Tax) for up to 200Mb data transfer (including surfing, sending/receiving email). If you use more bandwidth the price increases at £0.0025 per Mb until you hit the ceiling cost of £25 (at 6Gb/month) at which point you continue to surf at no further cost.

It's ideal for my parents that use the net for email and occassionally for browsing. Not any good for me as I play net games, surf a lot and leave my PC on 24/7 so I can FTP files between work and home.
8 REPLIES
N/A

Pay as you go ADSL

why not just get homesurf for £18.99 a month, or if thats too much the 150kbps adsl from tiscali at about £15 a month

seems pointless to me

Darren
Ianwild
Grafter
Posts: 3,835
Registered: 05-04-2007

Pay as you go ADSL

Hi,

The Metronet model is still to be proven as viable... Perhaps if that ISP made a profit, it would be worth looking at, but as it stands I think this one will need some time before it can be seen whether this model is sustainable.

Rest assured that it is our intention to offer the best possible value with all of our products and where we can feasibly offer products which appeal to a wider range of users, we always fill.

Regards,
CallumW
Grafter
Posts: 33
Registered: 30-07-2007

Pay as you go ADSL

...because it's cheaper still (as long as you do less than 200Mb per month)

Surely getting £10 (+vat) per month from low bandwidth users is better for Plusnet / Force9 than getting £0 from people because they don't use the internet enough to warrant paying £19
N/A

Pay as you go ADSL

how can selling a service at a lost be good for f9?? it will still cost them about £13 a month for the DSL connection

Darren
CallumW
Grafter
Posts: 33
Registered: 30-07-2007

Pay as you go ADSL

Like Ian said,
Quote
the Metronet model is still to be proven as viable


If it is then Force9 will, I'm sure, implement it into their costing structure (perhaps with a 200:1 or 500:1 contention rate?).

Thanks for the feedback guys
Ianwild
Grafter
Posts: 3,835
Registered: 05-04-2007

Pay as you go ADSL

Quote
.Surely getting £10 (+vat) per month from low bandwidth users is better for Plusnet / Force9 than getting £0 from people because they don't use the internet enough to warrant paying £19


Just FYI, The Wholesale ADSL prices (As charged to ISPs by BT) can be found here.

Regards,

Ian
CallumW
Grafter
Posts: 33
Registered: 30-07-2007

Pay as you go ADSL

Thanks Ian. That's quite an informative link.

I guess they are banking on clients doing >200Mb per month. I started as a low bandwidth user (back in the days when it was £45/month), but now I use my fair share and am very happy with F9 and my £21.99 account (although it would be nice to have Synchronous DSL as an option Wink)

The business logic they are probably following is that they gamble on maybe making a loss on the first couple of months until the users realize how convenient, fast and easy broadband is to use and all the features provided with it too (unless you're with BT Broadband Wink ).
Then, when usage goes up, the they recoup their loss and in 6 months return a profit with a happy loyal customer (that pays less for the web when they go on holiday 4 weeks in a year)

Well I guess that's their theory :?
N/A

Pay as you go ADSL

been considering metronet myself - two people I know been running with it for two months now (once virgin had let them go) with no problems

Although business model 'unproven' - because there is only a 3 month commitment, it seems the only risk to a user is the cost of setting up the account.

Whilst I am happy with my f9 account, it doesn't make much financial sense to me to be paying £21.99 / month when I might possibly be able to get the same access for £10 - depending upon my web usage - I'm guessing I'm light to moderate.

How long will it take for the business model to be proven?