Market Area Anomaly

[#1]

I live in an area that has 2 LLU operators available but is currently ranked Market A. Consequently I pay the premium rate for my broadband. The exchange is Weston, Stafford.

I know people who live in a village where there are no LLU operators but the exchange has been changed to Market C. Consequently their monthly bill has been reduced accordingly.

Can any-one explain why I am being penalised?

[#2]

HI @painterpete

Market A covers just under 10% of the UK population. Broadband will typically be more expensive. Market B covers the rest of the UK - just over 90%. Prices are cheaper than Market A, there's more choice of providers available.

Most broadband providers, (including ourselves), share the same basic infrastructure which is owned and maintained by Openreach. Each pay to use this network, but (usually) has their own technology in telephone exchanges. 
 

If a provider has their technology in an area, it means that better services can be offered, and, importantly, it works out cheaper for both them and the customer.

Unfortunately, that's not the case in parts of the UK with low populations, challenging or irregular local geography, or limited commercial potential. These things all make it less straight froward for companies to set up their technology.

The only mention of Market C I have ever heard of is in relation to the Hull Area, where there is the only one significant provider covering (roughly) 0.7% of UK premises (If anyone has any more information on this please do not hesitate to share as I would be very interested in reading this). 

Whilst I do understand the frustration Market Areas can cause, i'm afraid that there is little that can be done in regards to them, as it is not down to the ISP when it comes to which postcodes fall under which Market Area.

I hope this has given you some form of useful information. 

 - Alisdair 

[#3]

@MasterOfReality

I think that if you read @painterpete post again you will find that you have missed the point. If you read this https://www.ispreview.co.uk/index.php/2018/05/isp-plusnet-expand-uk-low-cost-areas-to-more-broadband... then you will note that some rural areas are being changed to Market B (not C). As I read it he is asking  if anyone can explain why his exchange has been left out.

I understand that this may be down to Ofcom, alternatively his exchange might have been overlooked by Plusnet when the regrading was undertaken.

[#4]

The reclassification of some exchanges from Market A to Market B is an industry-wide endeavour.

This doesn't mean that every Market A exchange will now be Market B.

For an area to classify as Market B, it must have three or more providers present (or forecast to be present).

With that said I've gone to the project owner to find out if Weston has been reclassified. If so then we can adjust your account accordingly.

[#5]

Could someone explain why someone on FTTC on a Market A exchange pays more when the cabinet is not connected to the local exchange but is connected to a head exchange which is Market B?

[#6]

I suspect that this is the anomaly that is being rectified by the recent reclassification for many customers.

[#7]

@jelv do you have an example?

[#8]

Thank you Gandalf, I look forward to hearing the result of your investigation. Painter Pete

[#9]

@painterpete I received a response about an hour ago advising that as it stands your exchange is staying as Market A but this may change.

[#10]

I tried starting an order on my own number - but it is being silly and saying I already have Plusnet broadband when I left 18 months ago so I can't check properly.

Mere is currently Market A but the FTTC comes from the Shaftesbury head exchange which is market B.

Do you think I am in a low cost area?

[#11]

thank you Baldrick, you have hit the nail on the head

[#12]

that is what I had heard and in that particular case it appeared that the impetus did not come from competitive activity.

[#13]

Thank you Gandalf. I will let it rest there and patiently await some future decision. Painter Pete.

[#14]

No problems Pete, I’ll keep my fingers crossed for you that things change.

[#15]

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@jelv wrote:

Could someone explain why someone on FTTC on a Market A exchange pays more when the cabinet is not connected to the local exchange but is connected to a head exchange which is Market B?

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This is the wrong question to ask, there aren't any different wholesale prices for FTTC between Market A and B. The local exchange and head exchange market classifications make no difference.