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BT Openreach to Hike the Cost of New Superfast Broadband ISP Connections

Posted: 31st May, 2011 By: MarkJ
bt openreach logoThe uptake of BT's new superfast 40Mbps capable FTTC broadband service could be dented after BTOpenreach, which is responsible for ensuring that all rival ISPs have equality of access to BT's local UK network, announced that the standard one-off connection fee would rise to £80 +vat from 1st September 2011.

At present most FTTC offering UK ISPs are able to benefit from a special connection fee reduction, which has cut the current price from £75 to just £35 +vat. Sadly this will come to an end on 30th June 2011 and providers will thus be forced to raise their prices. The additional £5 increase will follow later.

On top of that the cost of a Managed Install, which is currently being offered at just £12.00 +vat (one-off) until 30th June, will also rise from £24 to £25 on 1st September 2011. Some additional changes for ISPs are outline below.

BTOpenreach Statement

In addition to this, and in support of providing your customers with a total communications solution when selling super-fast broadband, we are pleased to announce a £50 reduction on the GEA-FTTC connection price when ordered as part of a simultaneous provide solution. This reduces the cost of MPF simultaneous provide from £157.79 to £107 and £153.22 to £103 for a WLR simultaneous provide. This offer will continue until 31 March 2012 and delivers savings of 33% on the cost of a simultaneous provide.

Finally we wanted to draw your attention to the fact that from 1 July 2011 we are also introducing a 9% rebate on CPs monthly Holding to Term charges. Holding to Term Charges become due when a service is ceased before the expiry of any minimum term for that service (minimum term period for GEA-FTTC is 12 months).

This is to recognise your concerns around holding to term those end users who are moving house and restoring service with you in the new address. The rebate will be payable one month in arrears against your total Holding to Term charges payable in the previous month and will be itemised on your bill. The 9% rebate is based on data from the Office of National Statistics Property Transactions report and will be refreshed annually in March.

Happily BT's optional Home Wiring Solution (e.g. moving the phone sockets/wires nearer to your TV), which is currently being offered for free, will be absorbed into the standard connection fee from 1st September 2011. Apparently well over half of all installations to date have requested a home wiring solution.

BT recently revealed that it had already spent £0.6bn of its £2.5bn fibre rollout budget. Some 5 Million UK homes will soon be within reach of its FTTC service, rising to 10 Million by 2012 (40% of the country). This is in keeping with BT's timetable to reach 66% or more of the UK with its FTTC and FTTP broadband services by 2015.

ISP BT Retail recently claimed to have 144,000 Infinity (FTTC) subscribers and was adding 5,000 per week, although any significant increase in the connection fee could easily put consumers off and hamper adoption of the service.
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