{"id":26524,"date":"2021-03-31T13:49:49","date_gmt":"2021-03-31T12:49:49","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26524"},"modified":"2021-04-01T16:29:33","modified_gmt":"2021-04-01T15:29:33","slug":"openreach-uk-raise-copper-line-prices-to-fuel-full-fibre-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/openreach-uk-raise-copper-line-prices-to-fuel-full-fibre-rollout.html","title":{"rendered":"Openreach UK Raise Copper Line Prices to Fuel Full Fibre Rollout"},"content":{"rendered":"

As expected (or feared) Openreach<\/a> (BT<\/a>) has today announced a series of wholesale price increases for UK ISPs that use certain legacy copper line broadband, FTTC<\/a> (VDSL2<\/a>, G.fast<\/a>, SOGEA) and phone products, which are intended to help the operator to afford their \u00a312bn roll-out of 1Gbps Fibre-to-the-Premises (FTTP<\/a>) technology.<\/p>\n

The move follows the recent publication of Ofcom<\/a>’s Wholesale Fixed Telecoms Market Review 2021-26<\/strong> (summary<\/a>), which among other changes saw the regulator move away from cost-based charge controls on copper line services. As part of that Openreach<\/a> also gained the ability to spread the cost of investment in FTTP<\/a> across a wider group of consumers (e.g. allowing them to recover some investment costs from both copper and fibre products).<\/p>\n

NOTE:<\/strong> Openreach<\/a>’s ambition is to cover 20 million premises<\/strong> with FTTP<\/a> by the mid to late 2020s (2025-30), which is expected to attract a total cost of \u00a312bn<\/strong> (here<\/a>). So far they’ve already done 4.5 million.<\/div>\n

Ofcom<\/a>’s decision was inevitably going to result in some price increases at the wholesale level, which seemed likely to hit those ISPs that have invested the most into unbundling (LLU) the copper network (e.g. TalkTalk<\/a> and Sky Broadband<\/a>). Naturally, any extra costs that hit ISPs will ultimately end up being passed on to consumers and so it has now come to pass.<\/p>\n

A quick glance across Openreach’s price notification page<\/a> today shows a plethora of small increases across multiple products. For example, the annual rental on various FTTC<\/a> speeds has gone up by between \u00a30.48 to \u00a31.68 (+vat) and it’s a similar story for installation services, migrations and various other products etc. Most of these increases are due to be introduced from 1st July 2021<\/strong>.<\/p>\n

The connection cost of a 10Gbps GEA Cablelink (capacity supply) will also rise from \u00a31042.00 to \u00a31051.71. More of the same may occur in future years. But it’s not all bad news as they’ve also reduced some prices for alternative network (AltNet) providers that harness existing cable ducts and poles to run their own fibre (PIA).<\/p>\n

James Lilley, Openreach’s Director of Managed Customer Migrations, said:<\/strong><\/p>\n

“It\u2019s our ambition to reinforce the UK\u2019s position as a global leader for digital infrastructure. That\u2019s why we\u2019ve been preparing to withdraw our ageing copper network and to simplify and focus on providing modern digital connections including our new full fibre platform.\u201d<\/p>\n

With the WFTMR giving us the certainty over pricing across our portfolio, we in turn can offer long term stability and choice for our customers. These price changes are a natural shift, and as a heavily regulated business the WFTMR has enabled us to make some modest price increases on certain legacy products to reflect the increasing cost of network maintenance and to encourage customers onto modern, digital alternatives.<\/p>\n

At the same time, we\u2019ve also implemented price reductions on some of our physical infrastructure access products and we believe that these changes will encourage alternative networks to use our network to help them build and ultimately enable more of the UK\u2019s homes and businesses to experience the benefits of faster and more reliable broadband.<\/p>\n

We know that upgrading people onto future-proofed full fibre broadband will keep the UK at the forefront of the global digital economy – boosting productivity, growth and prosperity. We want the UK to start reaping those benefits now, so we\u2019re encouraging providers, homes and businesses to make the switch to FTTP wherever it\u2019s available and sooner rather than later.”<\/p><\/blockquote>\n

Openreach have been careful to make such increases fairly small and gradual, so as not to introduce too much of an aggressive hit that might cause significant upset among UK ISPs and consumers alike. The operator is ultimately only doing what Ofcom<\/a> has allowed them to do and the regulator remains adamant that Openreach deserves the chance to make a “fair return<\/em>” on that huge FTTP investment.<\/p>\n

At the same time Openreach has to be careful about how they handle this because price increases could encourage consumers in some areas to move away to rival FTTP platforms, where available, which could be counter-productive to their goals. Finally, we should add that some FTTP linked product prices have also increased.<\/p>\n","protected":false},"excerpt":{"rendered":"

As expected (or feared) Openreach (BT) has today announced a series of wholesale price increases for UK ISPs that use certain legacy copper line broadband, FTTC (VDSL2, G.fast, SOGEA) and phone products, which are intended to help the operator to afford their \u00a312bn roll-out of 1Gbps Fibre-to-the-Premises (FTTP) technology.<\/p>\n","protected":false},"author":1,"featured_media":25383,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[55,56,69,66,74],"class_list":["post-26524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-fttc","tag-fttp","tag-bt-openreach","tag-sky-broadband","tag-talktalk"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach UK Raise Copper Line Prices to Fuel Full Fibre Rollout - ISPreview UK<\/title>\n<meta name=\"description\" content=\"As expected (or feared) Openreach (BT) has today announced a series of wholesale price increases for UK ISPs that use certain legacy copper line\" \/>\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\/2021\/03\/openreach-uk-raise-copper-line-prices-to-fuel-full-fibre-rollout.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach UK Raise Copper Line Prices to Fuel Full Fibre Rollout - 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