ISP Virgin Media O2 Business UK Cut Wholesale Ethernet Prices

Broadband ISP Virgin Media Business (VMO2) has today confirmed that they’ve reduced the prices of their high-capacity fixed wholesale services to businesses, ISPs and rival networks across all Dedicated Internet Access (DIA) bandwidths and National Ethernet services. Some by as much as 2.8% per annum.

Some operators first began reporting this move over a week ago, but VMO2 has now made it official. For DIA services, the operator is reducing its fixed wholesale prices by as much as 2.8% per annum across both fully-managed (including Network Termination Unit (NTU) and router), and partially-managed (NTU only), 100Mb, 1Gb and 10Gb bearers.

The company confirmed it would also be making reductions to all National Ethernet bandwidths delivered on a 10Gb bearer (1Gbps – 10Gbps). This is actually the second time they’ve cut their standard fixed wholesale tariff rates this year. In January, the operator reduced its National Ethernet pricing on key bandwidths, on a 1Gb bearer, by as much as 3%.

The revised pricing will be available for new orders, as well as being automatically applied to existing services, on VMO2’s UltimateFlex contracts.

Diego Tedesco, Wholesale Fixed Director at VMO2 Business, said:

“Since launching our UltimateFlex model in June last year, we have reduced prices for thousands of contracts. For those partners, their margins grew overnight. Now, we’re extending price reductions across more bandwidths – for new and existing UltimateFlex customers – helping all our fixed wholesale partners stimulate the market and drive business. It’s all about offering more flexibility and value when businesses need it most.”

As stated earlier, related customers of VMO2 Business will already be aware of the new rate card, but the price reductions themselves have only today become effective. A lot of businesses and broadband networks make some use of VMO2’s data capacity links, so this is an important development. Data capacity is of course only one part of an ISPs many costs.