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BT Wholesale Reveals ADSL Price Cut Details

Posted: 03rd Apr, 2007 By: MarkJ
Late last year BT revealed its intention to cut wholesale broadband ADSL prices once unbundled (LLU) lines had passed the 1.5m mark, which has already occurred. Today the operator has revealed what the new prices will be.

Thinkbroadband has the full low-down on the new pricing structure - HERE. One good example is the Capacity Based Charging 'MAX' (CBC MAX) product, which many will be familiar with as an 'up to 8Mbps' service.

The connection fee for this and many other products has been reduced from £40 to £34.86, while the monthly rental sees a cut from £8.40 to £7.63. These reductions are somewhat offset by the introduction of a new £33.75 cessation charge:

The biggest change is the introduction of the cessation charge which reflects what BT Wholesale is charged by BT Openreach when an ADSL connection is ceased. This charge will normally only be raised to the broadband provider when broadband is no longer required on a line, or when moving home. Additionally, in cases where broadband was automatically ceased due to name changes on the phone bill, the charge may be raised. If you are remaining in your home and changing provider you can avoid the cessation charge by making use of the MAC code migration process to change providers. BT Wholesale indicates that the reduction in connection charge should offset the costs to service providers, but only time will tell whether providers decide to absorb this fee or pass it on to the end-user.

Overall any reductions, especially to the more complex area of bandwidth capacity, mean that a typical service should cost slightly less to offer than it did before. We do not expect, given the cessation charge, many ISPs to pass these savings on.

The changes will come into effect from 1st May 2007 next month and no doubt some ISP's will be issuing their responses to BT's new pricing over the coming days and weeks.
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