{"id":33196,"date":"2022-12-15T08:02:23","date_gmt":"2022-12-15T08:02:23","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=33196"},"modified":"2022-12-15T08:52:13","modified_gmt":"2022-12-15T08:52:13","slug":"openreach-hikes-uk-copper-broadband-and-cablelink-prices","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/12\/openreach-hikes-uk-copper-broadband-and-cablelink-prices.html","title":{"rendered":"Openreach Hikes UK Copper Broadband and Cablelink Prices"},"content":{"rendered":"

We reported yesterday that Openreach<\/a> (BT<\/a>) had announced a range of price cuts for their full fibre broadband lines (here), but as part of the push toward FTTP<\/a> the operator also hiked prices for copper-line broadband and phone services too (FTTC<\/a> \/ SOGEA and G.fast<\/a> etc.). Such changes will be particularly painful for those with no alternative.<\/p>\n

In case anybody has forgotten. Ofcom<\/a>’s last 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 full fibre 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> It’s important not to overlook the fact that the surging level of UK inflation has an impact on these changes too. As does the rising cost of labour (wages).<\/div>\n

Put another way, the hikes in copper line based services are partly designed to both help fund BT<\/a>’s up to \u00a315bn<\/strong> investment in rolling out Fibre-to-the-Premises<\/strong> (FTTP<\/a>) to over 80% of the UK by the end of 2026 and to nudge consumers to upgrade. But as we said in the opening paragraph, this does have the tendency to penalise the many consumers who, at present, still have no other option than to take a copper line based service.<\/p>\n

The latest increases<\/a> thus continue a trend that started a year ago and, to be frank, there are far too many changes to list them all. But what we can do is summarise some of the biggest and most relevant tweaks, which will no doubt end up being passed on to consumers as part of annual price hikes from broadband ISPs and phone providers. Most of these changes will be formally introduced from 1st April 2023<\/strong>.<\/p>\n

For example, the one-off cost of supplying a basic new line (WLR) is soon to be \u00a359.25 +vat (up from \u00a347.40), while Basic Line Rental will reach \u00a3116.04 per year (up from \u00a3104.40) and the annual rental cost for a 40Mbps (10Mbps upload) GEA hybrid fibre FTTC<\/a> (VDSL2<\/a>) broadband service jumps to \u00a369.91 (up from \u00a362.93). Most one-off installation charges have also risen by around \u00a35-\u00a310.<\/p>\n

The price of fully unbundled (MPF) copper lines, such as those sold by TalkTalk<\/a>, Vodafone<\/a> and Sky Broadband<\/a>, will also see annual rentals rise to \u00a3104.76 (up from \u00a394.68). The story is similar for Openreach<\/a>’s SOGEA standalone-broadband (no voice service) products too. For example, a 40Mbps (10Mbps) tier will now cost \u00a3169.44 per year (up from \u00a3152.51) and the top G.fast<\/a> 330Mbps (50Mbps) tier rises to \u00a3309.48 (up from \u00a3278.64).<\/p>\n

The cost of supplying these broadband services with data capacity under Openreach’s Cablelink<\/strong> (Ethernet) solution has also increased (i.e. the connection between their fibre headend and an ISP\u2019s equipment). The connection charge for a 1Gbps Cablelink is now \u00a3607.36 (up from \u00a3546.68) and for 10Gbps it’s \u00a31,214.71 (up from \u00a31,093.35).<\/p>\n

Suffice to say, every Openreach-based ISP and many consumers are going to feel the impact from all this, and it’ll hurt. But 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 \u201cfair return<\/em>\u201d on their huge FTTP<\/a> investment. On the flip side, their FTTP products are getting cheaper in real-terms and via new discounts (here<\/a>).<\/p>\n

However, such big increases do pose risks for Openreach too, not least of which is the fact that they could also encourage consumers in some areas to move away to rival FTTP networks, which would be counter-productive to their goals.<\/p>\n

NOTE:<\/strong> These are the wholesale charges that ISPs must pay to Openreach, which won’t reflect the retail prices that consumers pay for similar products because providers still have to add other things on top (e.g. 20% VAT, a profit margin, services, capacity and network features etc.).<\/div>\n","protected":false},"excerpt":{"rendered":"

We reported yesterday that Openreach (BT) had announced a range of price cuts for their full fibre broadband lines (here), but as part of the push toward FTTP the operator also hiked prices for copper-line broadband and phone services too (FTTC \/ SOGEA and G.fast etc.). Such changes will be particularly painful for those with […]<\/p>\n","protected":false},"author":1,"featured_media":21329,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,55,417,69],"class_list":["post-33196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-fttc","tag-g-fast","tag-bt-openreach"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOpenreach Hikes UK Copper Broadband and Cablelink Prices - ISPreview UK<\/title>\n<meta name=\"description\" content=\"We reported yesterday that Openreach (BT) had announced a range of price cuts for their full fibre broadband lines (here), but as part of the push toward\" \/>\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\/2022\/12\/openreach-hikes-uk-copper-broadband-and-cablelink-prices.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Openreach Hikes UK Copper Broadband and Cablelink Prices - 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