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BT Wholesale to Raise Broadband Bandwidth Charges

Posted: 05th Nov, 2008 By: MarkJ
BT Wholesale is changing broadband prices in two phases with increases on 1st December 2008 to reflect end of life product strategy and reductions from 1st January 2009 to encourage next generation products:

murphx Director, Carl Churchill, told us: "In a market where people are driving down the costs, BT land this one on our lap. Call me cynical, but is it co-incidence that this was sent out the same week as BT profits warning? ISP's are a soft target, the pain of moving to LLU wholesalers is too great so we have little choice but to accept."

The move will see newer Wholesale Broadband Connect (WBC) based broadband services, which will be available to 40% of the UK by March 2009 and 60% by March 2010 and can offer speeds of up to 24Mbps via ADSL2+, reduced in rental price 29p per month. BT's 8Mbps IPstream Max and Max Premium products, IPstream Connect Max and Max Premium products will also reduce by 29p per month per line.

Sadly and despite facing aggressive competition from cheaper unbundled (LLU) rivals, BT will be increasing prices on bandwidth for existing IPstream and IPstream Connect ADSL broadband services. Monthly IPstream Connect Bandwidth Charges (CBC) will increase from £92.64 per Megabit/s to £122.64.

Meanwhile IPstream UBC bandwidth charges are being increased in line with the percentage increase in CBC central charges, from £0.205 per kbits/s per month to £0.2665 per kbit/s per month.

IPstream and IPstream Connect Home and Office End User Access Rental will increase from £7.63 and £11.63 per month to £8.01 and £12.21 respectively from 1st January 2009. There are more details, although we’re apprehensive about publishing everything outside of what is easily accessible.

Two ISPs that have privately voiced opinions to us fear the move will result in tighter restrictions and potential cost increases for consumers.
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