{"id":28203,"date":"2021-08-20T16:41:02","date_gmt":"2021-08-20T15:41:02","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=28203"},"modified":"2021-08-23T14:28:34","modified_gmt":"2021-08-23T13:28:34","slug":"openreach-prep-new-pricing-for-fttc-and-g-fast-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/08\/openreach-prep-new-pricing-for-fttc-and-g-fast-broadband.html","title":{"rendered":"Openreach Prep New Pricing for FTTC and G.fast Broadband UPDATE"},"content":{"rendered":"

Openreach<\/a> (BT<\/a>) has today given 2 years of advanced notice for a “pricing special offer<\/em>” on their wholesale Fibre-to-the-Cabinet (FTTC<\/a> \/ VDSL2<\/a>) and G.fast<\/a> based hybrid fibre broadband products for UK ISPs (including SOGEA and SOGfast), which once implemented will cover the period from 21st August 2023 to 31st January 2024.<\/p>\n

The public briefing<\/a> says that this is all about helping to “provide pricing certainty<\/em>” on these products beyond the current 5 year-term of the existing offer<\/a>. The new offer would initially only run for a 5-month period, although Openreach<\/a> added that they were “continuing\u202fto explore options for providing further pricing certainty\u202fbeyond this offer period, with up to 2 years\u2019 notice provided<\/em>.”<\/p>\n

NOTE:<\/strong> The “discounted prices<\/em>” are available to all ISPs and will not be subject to any commitments from ISPs.<\/div>\n

However, we’ve struggled to understand why they’re presenting the information in the way they’ve chosen. For example, at present Openreach<\/a>’s 55Mbps download (10Mbps upload) FTTC<\/a> tier attracts an annual rental of \u00a3101.76 +vat, but the new offer page<\/a> states that, from 21st August 2023 for the same tier, the annual rental will be “\u00a312 in addition to the rental price for [40Mbps down \/ 10Mbps up]<\/em>” and they do this for other products too.<\/p>\n

The 40\/10Mbps tier, which is regulated by Ofcom<\/a>, is currently priced at \u00a360.54 per year, so that would seem to make the 55\/10Mbps tier above \u00a360.54 + \u00a312 = \u00a372.54 +vat, which is cheaper than the current rental of \u00a3101.76. But at this point the presentation doesn’t make a lot of sense (i.e. why not just give a clear price instead of mixing up product references?). Confusingly, the 80\/20Mbps tier is given the same exact pricing.<\/p>\n

NOTE:<\/strong> These prices don’t include any of the extras that a retail ISP has to bolt-on top, such as capacity, networking, features, services, 20% VAT and a profile margin etc.<\/div>\n\n\n\n\n\n\n\n\n\n\n\n
Feature<\/th>\nOperative Date<\/th>\nUntil Date<\/th>\nAnnual Rental \u00a3 Exc Vat<\/th>\n<\/tr>\n
GEA FTTC<\/a> Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\nrefer to prevailing rental price for GEA FTTC up to 40Mbit\/s downstream and up to 10Mbit\/s upstream on price list 5.2.1<\/td>\n<\/tr>\n
GEA FTTC Up to 55Mbit\/s downstream and up to 10Mbit\/s upstream<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a312 in addition to the rental price for GEA FTTC Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n
GEA FTTC Up to 80Mbit\/s downstream and up to 20Mbit\/s upstream<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a312 in addition to the rental price for GEA FTTC Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n
GEA FTTC Up to 160Mbit\/s downstream and up to 30Mbit\/s upstream<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a336 in addition to the rental price for GEA FTTC Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n
SOGEA 40\/10 Mbit\/s<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\nrefer to prevailing rental price for SOGEA up to 40Mbit\/s downstream and up to 10Mbit\/s upstream on price list 5.5.1<\/td>\n<\/tr>\n
SOGEA 55\/10 Mbit\/s<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a312 in addition to the rental price for SOGEA Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n
SOGEA 80\/20 Mbit\/s<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a312 in addition to the rental price for SOGEA Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n
SOGEA 160\/30 Mbit\/s<\/td>\n21\/08\/2023<\/td>\n31\/01\/2024<\/td>\n\u00a336 in addition to the rental price for SOGEA Up to 40Mbit\/s downstream and up to 10Mbit\/s upstream in this table.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

We have queried this highly confusing approach with Openreach in the hope of getting the proper context, although with this being a Friday afternoon we might not get a reply today.<\/p>\n

UPDATE 23rd Aug 2021<\/strong><\/p>\n

Openreach has informed that the reason why they show their prices in this manner is because it’s impossible for them to know what the pricing will be on the Ofcom<\/a> regulated anchor product (40\/10 Mbps) in 2023, as well as what CPI increases the market might be subject to (i.e. it\u2019s a safe way to provide certainty and maintain the gap to 40\/10).<\/p>\n

The approach also avoids a cliff edge for ISPs, which would otherwise occur in August 2023 when all the prices would go back up to a list price. We should add that our price comparison example above is based on the list vs discounted price, but all ISPs are already using the existing discounted rate.<\/p>\n

Openreach also noted that the 55\/10 and 80\/20 tiers are priced equivalently today, and that will continue in 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"

Openreach (BT) has today given 2 years of advanced notice for a “pricing special offer” on their wholesale Fibre-to-the-Cabinet (FTTC \/ VDSL2) and G.fast based hybrid fibre broadband products for UK ISPs (including SOGEA and SOGfast), which once implemented will cover the period from 21st August 2023 to 31st January 2024.<\/p>\n","protected":false},"author":1,"featured_media":25912,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[55,417,69],"class_list":["post-28203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttc","tag-g-fast","tag-bt-openreach"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach Prep New Pricing for FTTC and G.fast Broadband UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Openreach (BT) has today given 2 years of advanced notice for a "pricing special offer" on their wholesale Fibre-to-the-Cabinet (FTTC \/ VDSL2) and G.fast\" \/>\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\/08\/openreach-prep-new-pricing-for-fttc-and-g-fast-broadband.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach Prep New Pricing for FTTC and G.fast Broadband UPDATE - 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