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Author Topic: Openreach Cuts UK FTTC “Fibre Broadband” Contract Terms to 1 Month  (Read 587 times)

phi2008

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Good news for consumers and ISPs alike. Openreach has today announced that the minimum contract term for their ‘up to’ 40-80Mbps Fibre-to-the-Cabinet (FTTC / VDSL2) broadband service is to be cut from 12 months to just 1 month for all services!

The decision means that ISPs buying an FTTC based “fibre broadband” service from Openreach will be able to offer shorter contracts to consumers and this applies to new connections, as well as the start of a stopped line or ISP to ISP migrations. In addition, the application of a Homemover’s Adjustment against current FTTC Held to Term charges will no longer apply.

However the decision about whether or not to pass this change on to subscribers will remain one for each ISP. Most of the biggest providers tend to tie customers in to their service with longer 12-18 month terms, although this often has less to do with Openreach’s minimum contract period and more to do with being able to offer a longer contract in return for a cheaper price.

The change, which will be introduced from 12th October 2017, does not apply to ultrafast Fibre-to-the-Premise (FTTP) lines, which currently have very limited coverage (these remain restricted to a 12 month term). By comparison FTTC is now a product of wide national availability (nearly universal) and no longer requires a 12 month term to help Openreach recoup their investment. Recent changes to the regulatory environment may also have had a role to play.


http://www.ispreview.co.uk/index.php/2017/07/openreach-cuts-uk-fttc-fibre-broadband-contract-terms-1-month.html#respond
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Chrysalis

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great news although i only expect the small players to make use of it
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GigabitEthernet

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This is good news. I see BT has gradually shortened its contracts over the years. FTTC now only has a 12 month contract.
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kitz

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I remain sceptical.  The likes of BTconsumer, Sky, TT etc usually use 12/18 month contracts to cover setup costs such as connection fee/migration fee/router cost.

Going back ~15yrs any charges used to be separate to monthly cost and a lot of ISPs did have one month contracts.  When I first joined Plusnet it was a one month contract.  We bought our own router and we had to pay circa £100 connection fee.

When the ISPs started offering free modems and migration, thats when the longer contracts became more popular. It wasn't anything to do with Openreach (or BTw as it was back then)  it was all about getting rid of upfront costs for the consumer.
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tommy45

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Holding to Term Charges become due when a Service is ceased before the expiry of any minimum term for that Service. The minimum term period for Fibre to the Cabinet and Fibre to the Premises products are 12 months unless the GEA service has migrated between Communications Providers when a minimum term of one month following such migration will apply.The rebate
It is for GEA FTTC migrations only  and probably also subject to  it being same service type at the same address  IE 80/20 BT WMBC or GEA based  so a like for like migration at the same address, and i do recall that this 1 month min term for CP's has been around since 2015  and at that time the 1 month min term was also subject to the condition that  the service had been live for at least the previous 12mths  prior to this migration, at that time they also reduced the  fee to migrate FTTC  from the £50 to £11.00 +vat They won't pass this down to the consumer, especially the big players, and you will have to haggle with the smaller ISP's for a deal,

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Hold to Term Charges become due when a Service is ceased before the expiry of any minimum term for that Service. The minimum term period for Fibre to the Cabinet products is 1 month from 12/10/2017.  Until this point the minimum term period was 12 months (unless the GEA-FTTC service had migrated between Communications Providers when a minimum term of one month following such migration applied).  The rebate on Hold to Term charges set out here was only applicable when the minimum term period was 12 months and was payable one month in arrears on a Communications Providers total Hold to Term charges payable in the previous month. The percentage was based on data from the Office of National Statistics, Property Transactions report.
So they have extended the 1 mth min term to new  FTTC provisions also ,Good but  none have offered a reduction in the migration fees or a 1mth min term after migrating i don't see any of them offering the 1 mths min term, with the exception of Pulse 8 who have always sold it this way


https://www.openreach.co.uk/orpg/home/products/pricing/loadProductPriceDetails.do?data=SjLGnN8O1mzybN7g39pZiNKvrleClYZjBLZ4w%2FibaalZ6rNZujnCs99NbIKJZPD9hXYmiijxH6wrCQm97GZMyQ%3D%3D

Latest price list https://www.openreach.co.uk/orpg/home/products/pricing/loadProductPriceDetails.do?data=yzq%2FQaGYa3hVgsB2ZYfjHxzfISuq3px%2FWFtgATP2kPRZ6rNZujnCs99NbIKJZPD9hXYmiijxH6wr%0ACQm97GZMyQ%3D%3D
« Last Edit: July 23, 2017, 06:15:59 PM by tommy45 »
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