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Low cost/|High cost area myth?

thisoldman
Grafter
Posts: 1,220
Thanks: 2
Registered: ‎06-04-2009

Low cost/|High cost area myth?

I have never fully understood plusnet''s story about having to pay more for bb because i  do not live in a so called low cost area.
All the people in my village pay the same price irrespective of who their isp is. AOL dont charge more ,one tel dont charge more orange etc etc    so why does plus net.
Last night in the pub, this topic was raised by someone who was intending to join plusnet but the low cost /high cost area put them off.
During a lively discussion a  telephone engineer of a well known company laughed and said the low cost high cost area story was a load of nonsense..
So, i do wonder who is telling the truth here. If all these other isps dont use the high cost area story why does plus net?
Ofcom are going to investigate this i was told.
6 REPLIES
Community Veteran
Posts: 38,460
Thanks: 1,031
Fixes: 62
Registered: ‎15-06-2007

Re: Low cost/|High cost area myth?

The fact is that other ISP's balance out the low cost / high cost exchanges and offer a standard price.
Plusnet reflect the charges from BTw on an exchange by exchange basis.
The BTw charges on Market 1 and 2 exchanges are fixed by OFCOM to encourage competition.
The BTw prices on Market 3 exchanges are not regulated and therefore BTw charge a lower price.
Have a read of my posts in this thread which may provide a little light
http://usergroup.plus.net/forum/index.php/topic,7103.0.html
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: ‎07-04-2007

Re: Low cost/|High cost area myth?

My interpretation of the Market 3 exchanges is that BT Wholesale can charge other ISP's what they like. So they can charge BT Retail a lower price than all the other ISP's. As Plusnet is part of BT they can also offer Plusnet lower prices. So all the other ISP's could be charged a higher rate.
Community Veteran
Posts: 38,460
Thanks: 1,031
Fixes: 62
Registered: ‎15-06-2007

Re: Low cost/|High cost area myth?

That isn't correct.
The exchange may be deregulated but BTw are still banned from charging different prices to different ISP's
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: ‎07-04-2007

Re: Low cost/|High cost area myth?

But what advantage is that to BT? They may as well carry on charging the same rate as Market 1 and 2 exchanges.
MrC
Grafter
Posts: 523
Thanks: 2
Registered: ‎17-07-2008

Re: Low cost/|High cost area myth?

Quote from: itsme
They may as well carry on charging the same rate as Market 1 and 2 exchanges.

Because OFCOM have decided that BTW are able to offer a more competitive price where the LLU competition is great enough to warrant it, otherwise BTW would operate at a major disadvantage.
Overall this Market 1/2/3/Hull banding wasn't one of OFCOM's better rulings for the consumer.
flapper
Newbie
Posts: 3
Registered: ‎04-05-2010

Re: Low cost/|High cost area myth?

As someone who was paying £15 + with a previous ISP. Long may the area 3 continue Smiley