The profit is in line rental and its that which subsidises DSL.
OFCOM fixes the BTw line rental prices, and even so if it was half price, then they would be operating at a loss.
Why then does the line rental prices keep increasing each year I have never seen in my lifetime the line rental price fall unlike like say your oil for heating or electricity or petrol and council rates, that is what gets me BTw or Retail prices just keep on climbing.
Sure the oil producers are now operating at a loss but who cares as long as it's cheaper for the consumer
Youre pointing the finger totally in the wrong direction. The wholesale prices are not climbing.
It is absolutely nothing to do with Openreach or Wholesale. Blame the Service providers. The basic price charged by Openreach/Wholesale has actually decreased over the past 10 years. In 2006 the Service providers were charged £100-68. Today they are charged £86.72 for line rental and its the ISPs who are making huge price increases.
Its the service providers who started offsetting broadband by line rental who are to blame for this one. TalkTalk started the ball rolling with "Free broadband" if you take line rental.
It is the service providers themselves who are hiking the line rental prices sky high [pun].
This is why I am so against price offsetting of broadband, most consumers dont look at the line rental cost and go for the headling 'Free broadband' or 'broadband for £2.99'.
IMHO it would be far more useful if OFCOM investigated the Service Providers for price offsetting and would make things much simpler and cheaper for consumers. Its the price offsetting which has helped to make the likes of Sky/TT bigger and why theres less of ISPs such as Zen in the market place.
Attached below is the wholesale line rental costs for the past 10 years.