{"id":29672,"date":"2021-12-23T11:11:26","date_gmt":"2021-12-23T11:11:26","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=29672"},"modified":"2021-12-23T11:21:33","modified_gmt":"2021-12-23T11:21:33","slug":"openreach-raise-uk-copper-wholesale-line-rental-prices","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/12\/openreach-raise-uk-copper-wholesale-line-rental-prices.html","title":{"rendered":"Openreach Raises UK Copper Wholesale Line Rental Prices"},"content":{"rendered":"

Openreach<\/a> (BT<\/a>) has announced a new round of price increases for UK broadband ISPs and phone providers that take their Wholesale Line Rental (WLR) product, which forms part of their transition to gigabit-capable Fibre-to-the-Premises (FTTP<\/a>) lines and the plan to stop selling WLR from September 2023 (full withdrawal by Dec 2025).<\/p>\n

Just to recap. Ofcom<\/a>’s Wholesale Fixed Telecoms Market Review 2021-26<\/strong> (summary<\/a>) saw the regulator move away from cost-based charge controls on copper line services, while 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> are investing \u00a315bn to cover 25 million premises (c.80% of the UK) with FTTP<\/a> broadband by December 2026.<\/div>\n

Suffice to say that some price rises on older copper line products were inevitable, and indeed we’ve already seen some of those hitting earlier this year (here<\/a>). Today’s announcement continues that trend with a new batch of price changes that will all take effect from 1st April 2022<\/strong>. We should point out that there are a few price decreases too, but mostly they seem to be going in the other direction.<\/p>\n

For example, the one-off cost of supplying a basic new line (WLR) is soon to be \u00a347.40 +vat (up from \u00a342.15), while Basic Line Rental will reach \u00a3104.40 per year (up from \u00a396.72) and the annual rental cost for a 40Mbps (2Mbps upload) GEA hybrid fibre FTTC<\/a> (VDSL2<\/a>) broadband line jumps to \u00a387 (up from \u00a383.52). See the full table of Pricing Notifications<\/strong><\/a> that have been updated today.<\/p>\n

As a reminder, these are the wholesale charges that ISPs must pay to Openreach, which won’t necessarily reflect the retail prices that consumers pay for similar products because service providers still have to add other things on top (e.g. 20% VAT, a profit margin, services, capacity and network features etc.).<\/p>\n

Katie Milligan, MD Customer Commercial and Propositions, said:<\/strong><\/p>\n

“We want to reinforce the UK\u2019s position as a global leader for digital infrastructure, so we\u2019ve been preparing to withdraw our analogue copper products and to simplify and focus on providing modern digital connections including our new full fibre platform. Our pricing announced for April 2022 supports this by increasing prices on the products being withdrawn, while holding the prices of future proofed fibre products flat in real terms.<\/p>\n

We know that upgrading people onto future-proofed full fibre broadband will boost productivity, the environment and prosperity \u2013 and we want the UK to start reaping those benefits now. That\u2019s why we\u2019re encouraging providers, homes and businesses to make the switch to digital lines where they\u2019re available and sooner rather than later.”<\/p><\/blockquote>\n

Openreach appear to be keeping these increases fairly small and gradual, so as not to introduce too much of an aggressive hit that might cause significant upset among consumers, although ISPs will no doubt feel the impact across their customer bases.<\/p>\n

The operator is ultimately only doing what Ofcom<\/a> has allowed them to, and the regulator itself remains adamant that Openreach deserves the chance to make a “fair return<\/em>” on their huge FTTP investment. On the flip side, their FTTP products did recently get cheaper via new discounts, which is intended to help encourage migration away from copper lines (here<\/a>). However, some underlying full fibre prices have also increased today, albeit remaining flat in real terms (here<\/a>).<\/p>\n

But Openreach has to be careful about how they handle this because price increases could also encourage consumers in some areas to move away to rival FTTP platforms, where available, which could be counter-productive to their goals.<\/p>\n","protected":false},"excerpt":{"rendered":"

Openreach (BT) has announced a new round of price increases for UK broadband ISPs and phone providers that take their Wholesale Line Rental (WLR) product, which forms part of their transition to gigabit-capable Fibre-to-the-Premises (FTTP) lines and the plan to stop selling WLR from September 2023 (full withdrawal by Dec 2025).<\/p>\n","protected":false},"author":1,"featured_media":27423,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[55,56,69,66,74],"class_list":["post-29672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-fttc","tag-fttp","tag-bt-openreach","tag-sky-broadband","tag-talktalk"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach Raises UK Copper Wholesale Line Rental Prices - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Openreach (BT) has announced a new round of price increases for UK broadband ISPs and phone providers that take their Wholesale Line Rental (WLR) product,\" \/>\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\/12\/openreach-raise-uk-copper-wholesale-line-rental-prices.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach Raises UK Copper Wholesale Line Rental Prices - 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