OFCOM new market classification scheme

[#1]

The market classification review now due in July, will occur a month after my current 12 month contract expires. 
A deciding factor for me whether to stay or look for an alternative ISP, is whether Ofcom decide that "Market-A" should be charged at a higher rate than "Market-B", and whether Plusnet continues to pass on that additional charge and penalize customers (as they do now for "Market-1"),  when all other ISPs have managed to absorb the price difference and charge all customers the same, irrespective of where they live.
My decision process has been made easier, as BDUK will not be upgrading my exchange and therefore I can eliminate any hope of FTTC becoming available,  and the obvious alternative ISP for me has just introduced interesting new broadband products with now realistic monthly data allowances, competitive pricing, and should give better performance than what I can currently achieve.
However there is a lot to be said for the excellent support I have received here from all the DCT staff, but in particular Chris and Chris Pettitt,  which I don't imagine could be matched elsewhere.
I'll wait and see what July brings, and I hope that Plusnet can change to flat rate pricing to persuade me to stay. 

[#2]

Quote from: purleigh

.... all other ISPs have managed to absorb the price difference and charge all customers the same, irrespective of where they live.

Is that really true, Purleigh?  Is Plusnet the last bastion of differential pricing to the cusdtomer? 

[#3]

Even last year, an Ofcom report specifically named Plusnet as the example of how customers had been disadvantaged by passing on the full cost of the market pricing differential.

[#4]

If a Market 1 exchange has been upgraded to FTTC through the BDUK programme do BT still charge the higher price for FTTC?

[#5]

I think that some of the LLU operators might charge the "Market 1" premium if they are unable to provide your connection over their LLU circuits.
I am still under the impression that Plusnet if fairly unique as a BT connection reseller, in charging more for "Market 1" connections.

[#6]

My concern is more what BTw charge the ISP rather than what the end user pays.

[#7]

Quote from: purleigh

I am still under the impression that Plusnet if fairly unique as a BT connection reseller, in charging more for "Market 1" connections.

[ cynical ]
I would suspect that it is more like other ISPs do not offer markets 2 & 3 at the lower prices.
[ /cynical ]
Do you really think that any ISP would be willing to offer market 1 pricing at less than they pay for it or at a reduced margin?  I set aside that where LLU is available on a market 1 exchange things are a bit more complicated.

Kevin

[#8]

Quote from: Townman

Do you really think that any ISP would be willing to offer market 1 pricing at less than they pay for it or at a reduced margin?

No, but I suspect that they charge a single averaged cost - making an assumption that 10% are on "Market 1" and 90% are not.
Having a single price for a product makes it easier for customers to understand, and for the ISP manage with simplified billing.

Quote from: jelv

My concern is more what BTw charge the ISP rather than what the end user pays.

I agree with that too, and I hope that Ofcom come up with a better plan to encourage competition at the exchange, rather than the existing price differential method - which is clearly has not been effective enough.
If BT think that so many "Market 1" exchanges are not commercially viable to upgrade the broadband equipment (even to 21CN),  then no LLU operator is ever going to spend any money there either.  So all charging a premium for "Market 1" does is disadvantage the end customers.
I'm also hoping that Ofcom introduce an increasing penalty for BTW, for any exchanges that have not been upgraded to a minimum of 21CN ADSL2,  so as to remove the torture of slow connections for those of us stuck on "up to 8Mbps" 20CN lines that are clearly capable of much greater speeds.

[#9]

Quote from: purleigh

Having a single price for a product makes it easier for customers to understand, and for the ISP manage with simplified billing.

Pricing is always going to be a challenge - a balance between paying for the cost of provision and the value of what you get.  At the moment pricing is skewed, many people are paying more for a poorer service across all markets.  Urban dwellers are paying less for superior services, whilst rural dwellers with antiquated d-side infrastructure are receiving a significantly inferior offer at the same or higher price.

Quote from: purleigh

I'm also hoping that Ofcom introduce an increasing penalty for BTW, for any exchanges that have not been upgraded to a minimum of 21CN ADSL2,  so as to remove the torture of slow connections for those of us stuck on "up to 8Mbps" 20CN lines that are clearly capable of much greater speeds.

This sounds like a sliding scale charging policy, one that I believe many would welcome but directly contradicts your suggested simpler to understand single pricing model.  I would like to see added to such a concept marked discounts for all subscribers who have aluminium in their circuits and 80% discounts for all receiving a service profile in the bottom 10%.
BTOR need to be measured on more than raw synch speed.  The metric needs to consider usability - sustainable data throughput and error rates.
Rural dwellers have somewhat come to accept that a loaf of bread will cost more in the village shop than their urban neighbours pay, but a least the loaf is of the same quality and freshness.  This is not the case with the services being provided by BTOR and they need to be forced to deliver improvements with urgency.
Cheers,
Kevin

[#10]

Quote from: jelv

If a Market 1 exchange has been upgraded to FTTC through the BDUK programme do BT still charge the higher price for FTTC?

Im on a Market 1 Exchange where BT are the sole provider of wholesale services ( or whatever ) and on my local Exchange there are 2 LLU providers Talk Talk, and Sky/Easynet
Theres also fibre available (FTC) with little green cabinets dotted around the place.

Plusnet charge £26.99 for fibre and i think thats for 18 months
Talk Talk charge £13.50 per month, 3.50+£10 for fibre medium 38meg down
or £18.50 for full fibre for estimated speed of 57meg
At the moment im paying plusnet £17.9 for broadband, (ADSL2+ or whatever it is)  and talk talk are charging £3.50 for the same thing.
Even with plusnets leave us and we will clobber you with a £30 fine talk talk will still work out cheaper.
If after this new market update in July plusnet are still taking the piss, and their prices are still somewhat higher then I shall be off.
I used to be impressed with plusnet, but the more i dig into their pricing model the more i realise that the have been taking me for a ride.
I no longer trust plusnet to provide a good honest value for money service and i no longer recommend them to anyone, the fact that no one from plusnet gives a toss about this speaks volumes.

[#11]

It's not Plusnet taking you for a ride, it's OFCOM telling BT Wholesale that they MUST charge Plusnet a higher price and Plusnet deciding they don't want to sell the service to you at a loss.

[#12]

...and as has been explained here before the reason OFCOM do this is.....
Precisely to encourage LLU operators to put their equipment into these smaller exchanges as they can charge higher prices in them which then makes it economically viable to do so in the first place knowing that BT Wholesale will not undercut them because OFCOM have barred them.
Its is OFCOM's way of encouraging competition at the smaller exchanges
Make it possible for the LLU operators to make larger profits in these exchanges with a degree of certainty.

[#13]

I'd have no problem with this policy if it only applied to 21CN exchanges.
For 20CN exchanges I'd like to see them telling BT that they can only charge a lower price. That would still give LLU operators a chance as they'd be able to advertise and offer faster speeds than BTw in the knowledge that if BT upgraded the exchange they'd then have to charge the higher price which would still leave them with an edge.
As it is, lower speeds at higher prices is a travesty!
I'd also like to know why when public money has been given to BT to upgrade an exchange to FTTC they have to charge higher prices!

[#14]

Just a quick update, checked the options under upgrade account, and I now have these:
Unlimited £9.99 per month
Unlimited no contract £ 12.49 per month
Fibre £14.99
Fiber extra £19.99 per month.
Is this the new market kicking in?
current product plusnet extra, 60GB £17.99

The gaps narrowed but talk talk are still cheaper, When i get time to get tied up in the call centre Que i may give plusnet a call.

[#15]

As far as I'm aware Ofcom have yet to publish their report though a draft awaits EU approval. However Ofcom regulate only wholesale prices, retailers can price as they wish.