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Equinox2 affect on the market, linking to story in thread.

WKDRED

ULTIMATE Member
After reading up on it, I have interpreted it in this way.

BT/Openreach benefit as lower wholesale cost is more likely to keep the big players with them, Sky e.g. dont resell CF or Netomnia.
The BT group with the discount can recover any potential losses via BT retail increased margins, and increased wholesale activity with partners.
Openreach partners, will obviously be over the moon as in typical fashion the discount wont necessarily be passed on so its a nice free margin boost. (As was the case with all the line rental cuts imposed on Openreach over the years whilst retail pricing went up and up and up). Is a wholesale manipulated price a success story when its not passed on to consumers? Ofcom eyes it probably is as their prime objective is to maximise retailers, not to minimise consumer costs.

So with Openreach partners backing it up, it was the alt net's basically being outgunned, and the gamble from Ofcom will be if it affects alt net rollout's. They may even privately be not so concerned about this now as Openreach have already been driven to do a large rollout (albeit not nationwide), and it could be considered that the alt net's have already served their purpose which was to get Openreach doing a rollout.

Netomnia remains without any external partner's and Sky dont resell CityFibre, (Clearly that £4 isnt enticing enough), whilst Zen whilst choosing to sell services in Openreach areas on the BTw backhaul (where their network doesnt reach), dont offer the same on Cityfibre's national network instead choosing to not serve those areas woth CityFibre FTTP, this means e.g. they prefer to offer 80mbit VDSL2 over Openreach compared to say 1000mbit over Cityfibre in areas their network doesnt reach.

Inherently there needs to be a large financial advantage to offset risk and some of the players seem very risk averse, or just really loyal to Openreach (in this case equinox2 probably has no effect).

So with CityFibre needing new financing, and build program halted in some areas, I am curious if there is any issues for any other alt nets or have Netomnia and co managed to keep building and getting new investment at same pace "after" Ofcom's decision?

 
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