kitz they make a lot on the line rental, wholesale line rental is almost 50% less than the retail price. This is not free broadband as line rental is required.
We are getting into semantics here. The broadband is free if you take line rental, I think its pretty clear on their website.
They're not hiding it. If you just want broadband at least they do offer it as a standalone product unlike some other ISPs.
As regards to wholesale costs, these break down as follows
Wholesale costs Line rental: £7.46 + VAT = £8.96
ADSL 2+: £5.88 + VAT = £7.06
So thats £16.02 before you start on anything else
... WMBC access - Impossible to work out as this will run into many millions. A 622Mbps central used to cost around half a million.
... and add on the huge cost for Junipers and other routers and network equipment.
... and add on staffing & premises
... and other one off costs such as migration or new connection fees.
ADSL 2+Connection: £39.79+VAT
FTTCConnection Self Install with own CP router £49+VAT
Connection Basic with Openreach Modem £80+VAT
Connection Managed Install using CP router £99+VAT
FTTC Monthly Access 40/10 = £14. 80/20 = £16+VAT
Not much profit in it for Plusnet - in fact its running at a loss. Definitely so with the cashback offer :/
* You have to add VAT on because although PN dont pay it to BT, they still have to collect it on behalf of HMRC for residential customers