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Author Topic: Plusnet Low & High cost area  (Read 22112 times)

NewtronStar

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Re: Plusnet Low & High cost area
« Reply #15 on: January 06, 2016, 12:11:57 AM »


It's not right though. I can't say for sure who's at the bottom of it.

The costs are 100% down to BT Wholesale that's who the regulator is when you look back at my plusnet bold post (defined by our regulator) and who is that it's BTw
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Al1264

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Re: Plusnet Low & High cost area
« Reply #16 on: January 06, 2016, 11:38:03 AM »

why should small exchange customers pay more for broadband than larger exchange customers something just dosn't smell right
By the same token, should those living in villages & countryside also receive subsidy so they don't pay more than urban dwellers for bus fares into town?
In fairness, many services to those in more remote areas are subsidised in some way or another.
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renluop

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Re: Plusnet Low & High cost area
« Reply #17 on: January 06, 2016, 01:55:38 PM »

why should small exchange customers pay more for broadband than larger exchange customers something just dosn't smell right
By the same token, should those living in villages & countryside also receive subsidy so they don't pay more than urban dwellers for bus fares into town?
In fairness, many services to those in more remote areas are subsidised in some way or another.
Similarly, why should a letter from Lands End to John o Groats not cost more than one from Bournemouth to Christchurch? I suppose it depends to some extent on what society decides is the social value of having a same cost service available to all.
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aesmith

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Re: Plusnet Low & High cost area
« Reply #18 on: January 06, 2016, 03:27:16 PM »

The thing that seems bizarre to me is that they claim that regulation sets a minimum price that BTW or OR are allowed to charge in these high cost areas. 
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Weaver

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Re: Plusnet Low & High cost area
« Reply #19 on: January 06, 2016, 03:57:57 PM »

Vote with your feet then.
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ejs

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Re: Plusnet Low & High cost area
« Reply #20 on: January 06, 2016, 04:30:56 PM »

It's all in that Ofcom WBA-Statement.pdf I linked to earlier. As far as I could tell, the regulated prices are only for IPStream Connect i.e. 20CN ADSL1.

Apparently there's no cease charge in Market A.
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aesmith

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Re: Plusnet Low & High cost area
« Reply #21 on: January 06, 2016, 04:42:48 PM »

Vote with your feet then.
By moving house to an area served by a low cost exchange?
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Weaver

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Re: Plusnet Low & High cost area
« Reply #22 on: January 06, 2016, 06:04:29 PM »

No, by changing ISP.  ;D
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aesmith

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Re: Plusnet Low & High cost area
« Reply #23 on: January 06, 2016, 07:39:07 PM »

Yes there are some ISPs that don't change their pricing between high and low cost areas.  I'm not sure how that works because they'll be paying more for (say) my connection than they would for one in a low cost area. 

By the way I'm not sure that discussions about subsidies are quite on the ball, the oddity in this case is that regulation dictates a minimum price, and that's unusual because it works towards some goal that the regulators have in mind, but against the interests of the end users.   The only beneficiary I can think of is BT.   In effect their subsidy is the other way round, BT cutting prices to compete with LLU, but clawing some of this back by their charges where they have a monopoly.
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Chrysalis

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Re: Plusnet Low & High cost area
« Reply #24 on: January 06, 2016, 09:40:18 PM »

Newt sorry I dont agree with you on this.

Obviously it costs BT more money to provide broadband to a remote village than it does to a city.

But for several years that cost has been subsidised by city dwellers hence most services having the same price regardless of location, BT pass on cost savings to isp's for the big areas to isp's but most isp's choose to use it to subsidise people in areas like yours so basically people like me pay more so you can pay less if that makes sense.

Plusnet is the odd one out in this instance, they chose to not subsidise and hence they have regional pricing.  Your MP will get nowhere, ofcom will 99% chance tell you to choose a competitor instead who subsidises your area.

As for moving your line not only will openreach say no, it would also be a very bad idea, a longer line will suffer more problems, especially on performance.
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Weaver

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Re: Plusnet Low & High cost area
« Reply #25 on: January 06, 2016, 10:51:46 PM »

There are plenty of ISPs to choose from. If you feel it's wrong what's happening, then just go for it.
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kitz

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Re: Plusnet Low & High cost area
« Reply #26 on: January 06, 2016, 11:02:05 PM »

@NS

Just seen this thread, and as Chrys said..   its OFCOM to blame for this.   It was to promote LLU provision and open up the market place.   I said at the time it would create a two-tier broadband system and it did.   

Im not sure how far you will get.   I wrote about it at the time here Broadband access market.   
A few years ago (5/6?) I was approached by someone from the BBC who were doing an article on it and wanted some more info as they thought it was unfair.   However I dont think much came of it.   iirc they were stonewalled by OFCOM who said it was better for the industry and opened up competition.
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Chrysalis

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Re: Plusnet Low & High cost area
« Reply #27 on: January 06, 2016, 11:12:45 PM »

yeah that wouldnt surprise me kitz, ofcom dont like been told they wrong.
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kitz

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Re: Plusnet Low & High cost area
« Reply #28 on: January 06, 2016, 11:53:58 PM »

There are plenty of ISPs to choose from. If you feel it's wrong what's happening, then just go for it.

In a way that made me laugh.   
Before OFCOM started messing with the Broadband Access Market Fees and the Margin Squeeze Test, we actually had much more choice when it came to ISPs.

Both of the above had some consequences that OFCOM never foresaw, yet some of us did.  As expected the LLU providers would only enter the profitable exchanges - cherry pick..  and those in more remote locations would suffer.   It also serves to keep the BTw prices higher than they could be.   BTretail never participated in location based fees, nor prior to OFCOM making them do so had BTw.   Most of the other ISPs at some time or other have had two tier pricing based on the Access Market. 
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Weaver

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Re: Plusnet Low & High cost area
« Reply #29 on: January 07, 2016, 12:01:51 AM »

@kitz my apologies
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