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BT Infinity Cuts UK Superfast Broadband Package to GBP5 Per Month

Saturday, August 2nd, 2014 (7:40 am) - Score 1,651

BT has, for next week only, added a £75 Sainsbury’s voucher to all new standard broadband bundles and a £125 voucher for their superfast (FTTC) packages. In addition, the entry-level price of their superfast BTInfinity 1 service has been reduced to just £5 per month for the first 6 months (£15 thereafter) and a series of new student deals with 9 month contract terms are now available.

As usual customers will also need to take BT’s Line Rental from the equivalent of £13.32 per month when pre-paid for one year or £15.99 monthly. On top of that all subscribers gain access to free BTSport TV channels and the usual 18 month contract still applies. The other bits are listed below and it should be noted that most of BT’s broadband and phone bundles are currently at half price for the same period.

BT Infinity 1

* Download speeds of up to 38Mbps (9.5Mbps uploads)
* 20GB Usage Allowance
* 5GB Online Cloud Storage
* £30 Activation Charge
* FREE HomeHub 5 Router
* BT SmartTalk (voice calls over wifi/3g/4g)
* FREE UK Weekend Calls (add Anytime calls for £7.50)
* FREE Unlimited BTWiFi Hotspots
* FREE Parental Controls (Network Level Filter and Anti-Virus etc.)

PRICE: £5 per month for six months (£15)

In addition, BT has also re-introduced their special student 9 month contract packages, which start at just £14 a month for the BT Infinity Extra + Calls bundle with a 40GB usage allowance, up to 38Mbps speeds, HomeHub5 router and free weekend calls.

Take note that BT has also adjusted their student system slightly to ensure that orders for the 9 month contracts are given the correct term, which follows a stumble on this issue in the previous term.

Leave a Comment
40 Responses
  1. Avatar Darren says:

    If Bt can afford to give away a £125 voucher to every new customer, they didn’t need state aid to roll out fttc , the Goverment have just created a bigger monopoly, no other ISP can compete and and a completely un-level playing field has been created. On a positive note I suppose customers signing up are getting some of the tax they have paid back from BT 🙂

    1. Avatar FibreFred says:

      BT Retail didn’t roll out FTTC

    2. Avatar Unknown101 says:

      State aid that has to be re-paid when the cabinet reaches 20%+ in take up. I know most BDUK cabinet by me have at least 40% take up and the commercial ones are nearly full if not need another dslam as they have maxed out (shows demand is there for this FTTC service).

    3. Avatar FibreFred says:

      Didn’t realise they had to pay back the funds when it reaches 20% ? That should keep some regular gripers happy

    4. Avatar Darren says:

      Fibrefred i think your comment would be valid if BT group was truly split up, do you honestly believe there is no connection between BT group companies ? , I think if you do its probably only you and Ofcom

      In regards to Unknown101 comments regarding repayment, I think the only clawback on Kents contract for the BDUK project is on “Super Profits” which Im sure will never come into effect, not sure where you got the 20% from.

    5. Avatar FibreFred says:

      Darren it’s hard to say , evidence over speculation would be a good starting point for most

    6. Avatar JNeuhoff says:

      With an average FTTC takeup of 15% or so, we reach a situation, where VDSL deployment per customer becomes so expensive that other options should have been considered, such a fibre REPLACEMENT with nearly 100% usage. And of course without wasting taxpayer’s money given to this beggar.

      As regards the clawback clause: As far as I know these are different for the individual BDUK contracts, and often hard to come by to with actual figures, even under Freedom of Information Act requests. In many cases, if a certain threshold is reached, e.g. 20% takup, the surplus doesn’t come automatically back to the taxpayer. Rather, BT has then to re-invest the surplus to increase the coverage, so again only BT will benefit from it, strengthening even further its publicly funded monopoly. This is anything but a free market, quite to the contrary, it is quite distorted.

    7. Avatar Darren says:

      A friend of mine (who must have been bored) done a very rough calculation on the value of copper in BT’s network and came to the conclusion that they could replace it with fibre for very little cost taking out the scrap value. That would have got the UK to a very nice position rather than the FTTC stop gap solution.

    8. Avatar Unknown101 says:

      BT has an obligation to keep the copper in the ground and provide everyone with a telephone line so if you want a pure fibre network you’ll have to take that up with OFCOM. Also there isn’t actually that much copper left in the ground all the valuable stuff has mostly been taking out already in a heavy cable recovery operation that has taken place. If the final copper was to be taken out you’d need to factor in traffic management and man hours to recover it which will take the value down significantly!

    9. Avatar TheFacts says:

      @Darren, what numbers did your friend come up with?

    10. Avatar GNewton says:

      @TheFacts: As usual, why don’t you do your own research? It would only take a few seconds to find the answer to your quesation about the estimated value of BTs copper on Google: https://www.google.co.uk/?gws_rd=ssl#q=BT+copper+value

    11. Avatar TheFacts says:

      None of the links show an actual calculation, how did your friend calculate the value?

    12. Avatar Steve Jones says:

      @darren

      This bit of nonsense about the value of the copper in BT’s network. is Garbage (as are the links that echo it). This was started by Tim Worstall who write for the Register and was based on two fundamental errors which means he overestimated the value by a fact of 20. That was for two reasons. First he worked on the basis that the total length of cable claimed by BT is of multi-pair cable (which a moment’s calculation reveals it clearly isn’t on a mileage per household basis). The second is that Tim Worstall had assumed the total weight of a multi-pair cable was all copper. If you do the calculations based on the SWG of the wire, it reveals that about half the weight of multi-core cable is not copper, but insulation (including the gloop designed to keep out water).

      Here’s the calculation I did in response to this fanciful calculation by Tim Worstall (you can find it in the comments). Others have done similar calculations.

      http://www.theregister.co.uk/2011/09/22/bt_copper_cable_theft/

      It might be wise if Tim Worstall spent checking the assumptions here. Number one, it to take the weight of the copper, and not the whole cable.

      This is 24 AWG cable with a core diameter of 0.51mm. That’s 0.0255 x 0.0255 x PI x 100 = 0.204 cubic centimetres per metre length. Now double that for one pair and it’s 0.408 cubic centimetres per metre length. Now add a (generous) 10% for the overhead of twisting (local network cable is lightly twisted). That yields 0.449 cubic centimetres per metre length of one pair. Multiply that by the density of copper (8.94gm per cubic centimetre) and that’s 0.449 x 8.94 = 4gm of copper per metre of twisted pair. There are 1,609 metres in a mile, so that’s 6.4Kg of copper per pair per mile. A 10 pair cable would therefore have 64Kg or copper per mile, not 132Kg per mile. That immediately slashes Mr. Worstall’s valuation by over half as about half that weight will be sheathing.

      Then we have the big question – is BT’s figure of 75 million miles an estimate of the total length of cables, total length of pairs, or total length of wire? If we take the total number of BT lines in the UK it’s of the order of 25 million. If that 75 million miles is 10 pair cables, that implies an average of 30 pair-miles per line. Even allowing for some spare pairs, this is clearly ridiculous. If the figure of 75 miles is pairs, then the total “pair length” per line is around 3 miles, probably not an unreasonable estimate – broad band spends indicate average line lengths are in the region of 2-2.5 miles leaving about 15-20% “spare” lines. If I do the same for total wire length, then the result (1.5 miles per line) is rather too low to be credible.

      So, I would suggest that BT are quoting an estimate for pair lengths knocking 90% of Mr. Worstall’s fanciful estimate.

      So on that basis, we have 75 million miles of pairs x 6.4Kg = 480,000 tonnes of copper in BT’s network. That’s still £2.4bn of copper, a tidy sum, but nothing like the 20 x estimate that the author of this piece has calculated.

      There’s also another thing – if the value of the copper alone in BT’s network was really £50bn, and we adopted a modest 7% ROCE, then Ofcom should be allowing a line rental income on that basis alone of £3.5bn per year, or about £12 per month on just the copper before including the capital value of the ducts, poles, maintenance, rates etc. As that’s approaching half the wholesale monthly costs of a line, that’s clearly nonsense.

    13. Avatar Steve Jones says:

      @JNeuhoff

      Any clawback goes to the local body. It’s wholly at their discretion whether any such funds get placed into a re-investment fund or not.

      https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/120696/state-aid-guidance_claw-back_v1_0.pdf

      “3.1 Local bodies are able to use a mechanism whereby excess subsidy identified during the life of the contract can, at the local body’s discretion,
      be reinvested in order to extend the supplier network further into the eligible intervention area.”

      Of course it’s very likely that any such “reinvestment funds” will get used to extend the scope of the BDUK call-off contract, but it’s wholly at the discretion of the local body if such a fund is created and how such funds are spent subject, of course, to the EU subsidy rules.

      As usual, the definitive documents are almost always available if people can be bothered to read them.

    14. Avatar Gadget says:

      Steve – just for those unwilling or unable to search (even ISPReview) here the link to the Isle of Wight contract http://www.iwight.com/azservices/documents/2720-Redacted-Contract-and-Schedules.pdf

    15. Avatar FibreFred says:

      Read

    16. Avatar FibreFred says:

      Read official documents Steve ? Where’s the sense in that its much easier as a bt hater to just make it up and post it and hope no one looks any deeper

      JN said he wasn’t going to post on here anymore I bet he’s wishing he kept to his word now after his latest gaff

    17. Avatar GNewton says:

      @Steve Jones: Curious, has any BDUK contract actually reached the stage of this drawback clause? And if so, how was the surplus money used? JN could have probably found the BDUK drawback clause details through a simple Google search.

      BTW.: It’s always amazes me to see how almost any discussion on this forum gets so derailed into an emotional battle between BT advocates (especially FibreFred) and Raindrops/JN (who don’t like BT). Maybe it’s time for this forum to be moderated a bit more. A first step would be to stop calling names at each other (FibreFred is one of the worst offenders on this).

  2. Avatar hmmm says:

    even if it was FREE I still wouldn’t have it you,s can stick it where the sun don’t shine especially from the BT Cowboys

    1. Avatar X66yh says:

      So do tell us
      Are you going to remain on ADSL2+ forever then?

  3. Avatar Comic Assassin says:

    There are many agents apart from BT’s ISP division that offer FTTC service. I for one would never ever touch BT again not even if they gave it to me for free, their technical knowledge/script they read is shocking!

  4. Avatar Raindrops says:

    Story forgot to add…

    FREE Overseas Indian call centre that do not listen
    FREE Engineer call outs for issues followed by a £129 bill

  5. Avatar fastman2 says:

    comic asassin so who do yhink isd providing the Ethernet GEAT for other operators FTTC — — oh that woudl be openreach – as it provdies sercices to ISP on a equivanelt and fair basis — whether you believe it not not

    1. Avatar Kits says:

      I think you will find this is not a fair price most ISPs pay mnore than what BT retail sell FTTC for..

      If BT continue this way other should be no further funding for them from public funds

  6. Avatar Comic Assassin says:

    Fastman2 openreach isnt an ISP as you would see from my post I’m talking about BT’s ISP side not Wholesale and not Openreach but BT as an ISP who’s call centres abroad out right lie to you! been their before and it will never ever happen again!

  7. Avatar hmmm says:

    @X66yh I have already got the vdsl super slow shite installed and BT say what would we do without super duper fibre optic ? .

    Ans: nothing as its rubbish and all a farce .

  8. Avatar col says:

    Scrap BT retail and move all customers to Plusnet….Bt’s more successfull customer facing isp.

  9. Avatar fastman2 says:

    kits

    openreach sells GEA to service providers iN equivalent manner at the same prices to all CP’s

    1. Avatar Kits says:

      If that were true BT retail wouldn’t be able to sell so cheap unless they are a charity getting aid from all over.. OH forgot they do get aid from silly government out of the taxes..

    2. Avatar FibreFred says:

      BT Retail aren’t getting any aid

    3. Avatar Steve Jones says:

      @Kits

      You clearly have not the foggiest idea how BT is regulated. If Ofcom thought that BT Retail was selling at a loss, then they (and the competition commission) would be down on them like a ton of bricks for predatory pricing. In fact it goes further than that. Ofcom actually regulate BT Retails minimum pricing as they introduced a set margin sufficient to allow competitors to make a profit by operating what’s called a “margin squeeze test”. So it’s not just sufficient that BT Retail can’t make a loss, they also have to set prices high enough that competitors can make a margin.

      Whilst this has long applied to phone calls and standard broadband, Ofcom are actually in consultation to extend this test to include BT Sports as part of the package. (This is notoriously difficult thing to do with bundled deals; Sky, after all, are considered to have market power on pay TV and they provide discounted BB deals with their pay TV offerings).

    4. Avatar Kits says:

      @ Steve Jones

      You are obviously unaware of the number of BT ex managers now placed in OFCOM they have looked and do continue to look. Sadly OFCOM has become where BT is concerned toothless..

      I have spoken to a few smaller ISPs and there is no way they can compete with BT’s or Plusnets FTTC prices taken from this site.
      BT Cheapest * Price £5.00 (*15.00) Setup £30.00

      Smaller ISPs are charged £97 setup for starters all others are aware that it is useless takiong FTTC with caps this is where BT can become confusing to customers many signing 18 month contracts to find the download limits restrict the use.

      I have seen how BT works from both sides plus read the inside information that is supplied to shareholders, yes I hold shares in BT worth less now than when they were bought.

    5. Avatar FibreFred says:

      Kits smaller ISPs are charged the same as larger ?

  10. Avatar fastman2 says:

    plusnet is a standalone CP’ in its own right

    1. Avatar Kits says:

      Plus net is owned by BT the latest CEO is from BT stock the old plusnet CEO long gone..

  11. Avatar Comic Assassin says:

    Kits is correct PlusNet is part owned by BT but a 100% much better customer service.

    1. Avatar Kits says:

      Plus net is not part owned it is fully owned just the deal was made so plusnet could keep and trade under its name since they could set up and work traffic management and BT couldn’t.. 😀

      But now the CEO who used to own Plusnet has gone it is managed by BT staff CEO is from the management side from BT..

      That siad at least for the present the call center is in the UK but sadly now from an old BT building in Leeds still had the BT logo on it..

      Just search for it on google maps take the streetview way. 😀

  12. Avatar fastman2 says:

    plusnet are a stand alone CP with his own pricng anf its onw relationship with wholesale the same as any other CP’s who deal with BT wholesale as a channel

  13. Avatar Comic Assassin says:

    It may be run as a separate company but it’s owned by the BT Group

    1. Avatar Gadget says:

      Given the first part of your statement the relevance of the second half to the argument is?

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