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Consumer 1Mb ADSL Service

JayC

Regular Member
Just read about (and commented on) Demon launching a 'budget' 512k ADSL service. I guess the motivation for doing this is to compete in an increasingly competitive market place.

Demon have always offered a standard package that exceeds those offered by other ISP's who (most of which) charge extra for comparable features like fixed IP, no port blocking, unlimited traffic. Demon are also fairly unique in that they never had a cut off for their unmetered dial-up packages.

When you compare the features included with the service offered by Demon they aren't that much more expensive than their competitors so I'm surprised by their decision to offer a cut price basic service when I'm sure their existing users are crying out for them to launch a competitive 1mb consumer service.

Surely they can't be worried about £5 when their only 1mb service costs £55+VAT which is at least £20 more expensive than any other ISP. I've been with Demon since 1996, and am really happy with the service, but if they still don't offer a competitive consumer 1mb service by the time my ADSL contract expires early next year I'll be leaving them for someone else.

Jason.
 

Muggins

Regular Member
I totally agree with what you are saying, but at the same time maybe this introduction of the lower priced 512 package is a move in the right direction.
The more new custom gained by this the more chance that a similar package will be created for 1mb.

Its a shame though that the benefit of cheaper 1mb packages for existing customers may possibly all lie on the conclusion of how this 512 package appeals to new customers.
 

Web Buddy

Guest
JayC said:
Just read about (and commented on) Demon launching a 'budget' 512k ADSL service. I guess the motivation for doing this is to compete in an increasingly competitive market place.

Demon have always offered a standard package that exceeds those offered by other ISP's who (most of which) charge extra for comparable features like fixed IP, no port blocking, unlimited traffic. Demon are also fairly unique in that they never had a cut off for their unmetered dial-up packages.

When you compare the features included with the service offered by Demon they aren't that much more expensive than their competitors so I'm surprised by their decision to offer a cut price basic service when I'm sure their existing users are crying out for them to launch a competitive 1mb consumer service.

Surely they can't be worried about £5 when their only 1mb service costs £55+VAT which is at least £20 more expensive than any other ISP. I've been with Demon since 1996, and am really happy with the service, but if they still don't offer a competitive consumer 1mb service by the time my ADSL contract expires early next year I'll be leaving them for someone else.

Jason.
The main market for Residential ADSL is 512Kbs and that market is pretty price sensitive. I suspect thats why they are cutting the price. The 1Mbs market at present is a great deal smaller and not so price sensitive. That could and probably will change over the next 12 months as prices fall.
 

TRIaXOR™

ULTIMATE Member
Supanet just dropped thier prices too, £22.96 (Inc VAT) for an uncapped 1Mb connection :eek: sorta makes demon look like ripoff merchants :shrug:
 

Muggins

Regular Member
TRIaXOR™ said:
Supanet just dropped thier prices too, £22.96 (Inc VAT) for an uncapped 1Mb connection :eek: sorta makes demon look like ripoff merchants :shrug:

typical :mad:
 

JayC

Regular Member
I telephoned Demon today and they do support migrations although not officially. You have to give 30 days notice but they will provide you with an MAC code which you can then pass on to the new supplier.

I've decided I'm off to Eclipse when my contract expires in April 2005 (maybe sooner if I can justify the penalty to myself) as I quite fancy their FLEX products which only have a 1 month contract. At the moment I can't see the point in paying for a 1mb service when I'm not around or I'm not using the computer to download.

Even as 1mb services reduce in cost the 512kb services will reduce accordingly. Eclipse is currently £23.95 and to FLEX up to 1mb is 9p per minute. I know that there are some cheaper 1mb services but Eclipse include a fixed IP as a no-cost option.
 
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