{"id":21370,"date":"2020-03-04T15:15:50","date_gmt":"2020-03-04T15:15:50","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=21370"},"modified":"2020-03-04T15:19:21","modified_gmt":"2020-03-04T15:19:21","slug":"bt-wholesale-pricing-for-550mbps-and-1gbps-fttp-irks-uk-isps","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/03\/bt-wholesale-pricing-for-550mbps-and-1gbps-fttp-irks-uk-isps.html","title":{"rendered":"BT Wholesale Pricing for 550Mbps and 1Gbps FTTP Irks UK ISPs"},"content":{"rendered":"

The wholesale division of BT<\/a>, which sells broadband and other services to a large number of UK providers, has recently published their pricing for Openreach<\/a>’s new 550Mbps (75Mbps upload) and 1000Mbps (115Mbps upload) Fibre-to-the-Premises (FTTP<\/a>) tiers. But not all ISPs appear to be happy with the proposed charges.<\/p>\n

Openreach<\/a> are expected to introduce their new tiers from 23rd March 2020. The base rental for these top consumer tiers will be \u00a327.28 +vat per month for 550Mbps and \u00a331.28 +vat for 1000Mbps from 1st April 2020, with both also attaching a \u00a398.48 +vat one-off connection fee.<\/p>\n

NOTE:<\/strong> Openreach<\/a> also has a special discount on the launch of 550Mbps and 1Gbps, which actually cuts the monthly rental even lower to \u00a321.28 and \u00a324.28 +vat on the data-only variant until 30\/09\/2022.<\/div>\n

Naturally providers that buy direct from Openreach, such as major unbundled providers with strong capacity links (e.g. TalkTalk<\/a>, Sky Broadband<\/a>), should be able to create some competitively priced packages. Meanwhile those who buy from BTWholesale, particularly smaller players without economics of scale, may struggle more to compete.<\/p>\n

BTWholesale’s Prices (Wholesale Broadband Connect)<\/strong><\/span>
\n550Mbps (12 Months) \u00a350 +vat per month
\n1000Mbps (12 Months) \u00a375 +vat per month<\/p><\/blockquote>\n

The standard charges represent a mark-up of \u00a322.72 (+84%) on the 550Mbps tier and \u00a343.72 (+140%) for 1Gbps by BTW, which is of course before the retail ISP adds its own costs on top to make the price we all pay (e.g. 20% VAT, profit margin, network \/ capacity, service features, support costs etc.).<\/p>\n

Suffice to say that at those levels the consumer packages are going to struggle to be competitive with gigabit tiers from rival services like Virgin Media<\/a>, Cityfibre<\/a> (Vodafone<\/a> etc.) and so forth, which is something that a lot of retail ISPs on the BTW platform were hoping to deliver. Mind you such pricing is perhaps to be expected when it comes to BTWholesale.<\/p>\n

We privately asked a number of BTW using ISPs about this and received some mixed feedback. One provider felt as if the pricing was “very short sighted<\/em>” and could undermine Openreach’s efforts to upgrade the UK’s digital infrastructure, while another said it was a “complete non-starter<\/em>” that would get no sales and push them toward working with rival FTTP<\/a> networks. A few also wondered aloud if it wasn’t an attempt to protect leased line sales.<\/p>\n

However some ISPs took a more neutral stance and one of those pointed out that it was far easier for BTW to test the waters with a higher price at first, not least because it’s easier to reduce prices later than to increase them if you get it wrong. Similarly others felt as if the price was a way to test both demand and manage the impact upon network capacity (catering for such fast tiers is an expensive business).<\/p>\n

Quite how all of this will be impacted by Openreach’s secret (well.. not so secret anymore) plans to introduce big discounts on their FTTP<\/a> tiers later this year remains to be seen (here<\/a>), but for the time being there’s a fair bit of unease with BTW’s approach.<\/p>\n","protected":false},"excerpt":{"rendered":"

The wholesale division of BT, which sells broadband and other services to a large number of UK providers, has recently published their pricing for Openreach’s new 550Mbps (75Mbps upload) and 1000Mbps (115Mbps upload) Fibre-to-the-Premises (FTTP) tiers. But not all ISPs appear to be happy with the proposed charges.<\/p>\n","protected":false},"author":1,"featured_media":21372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[97,56,69],"class_list":["post-21370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt-wholesale","tag-fttp","tag-bt-openreach"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nBT Wholesale Pricing for 550Mbps and 1Gbps FTTP Irks UK ISPs - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The wholesale division of BT, which sells broadband and other services to a large number of UK providers, has recently published their pricing for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/03\/bt-wholesale-pricing-for-550mbps-and-1gbps-fttp-irks-uk-isps.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BT Wholesale Pricing for 550Mbps and 1Gbps FTTP Irks UK ISPs - 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