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Author Topic: Expensive Reality of UK FTTP on Demand Broadband Hits Home  (Read 423 times)

Bowdon

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Expensive Reality of UK FTTP on Demand Broadband Hits Home
« on: March 12, 2018, 11:10:41 AM »

https://www.ispreview.co.uk/index.php/2018/03/expensive-reality-uk-fttp-demand-broadband-hits-home.html

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Customers who last year delayed ordering one of Openreach’s (BT) up to 1000Mbps capable FTTP on Demand (FoD) ultrafast broadband products, perhaps in the hope that the new UK wholesale ISP costs might result in a price cut, have been left surprised by the large build quotes.

The FoD or FTTPoD service is designed to be requested (‘on demand‘) in slower FTTC capable areas where Openreach’s pure fibre optic cables usually only go so far as your local street cabinet. Essentially it enables you to get an ultrafast Fibre-to-the-Premises (FTTP) line built right to your property (e.g. business or home), even if FTTP wasn’t planned for the area, albeit with the customer having to pay the significant build costs involved.

It’s important to point out that FoD is a completely different ball game to a native FTTP deployment. In a native rollout Openreach cover the cost of deploying their fibre directly to your property as part of their self-funded or state aid supported rollout and then the property owner only needs to pay a small setup fee to get connected (i.e. they don’t have to cover the civil engineering costs).

The issue of FoD pricing has always been a contentious one due to the high costs involved with building such a network and the fact that it’s targeted more at businesses (SME) than homes, although residential people with very deep pockets could still order it; Openreach’s previous price hike in May 2014 appeared to put the service increasingly out of reach as an option for domestic use.

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    Example Old vs New Build Costs (Estimated)

    OLD: £2,000.00 +vat [Band B] in Merseyside
    NEW: £9,800.00

    OLD: £1,800 [Band B] in Brighton
    NEW: £13,000+

    OLD: £2,750
    NEW: £18,100

    OLD: £7,675 [Band G]
    NEW: £13,700

    NOTE: Only a Site Survey can determine if there may be any additional ECC’s (Excess Construction Charges) above the old charge band model. Likewise the cost under the new system might go up or down depending upon whether the customer chooses to proceed and take a full engineering survey (i.e. the first desktop survey is only a VERY rough estimate).

So in reality the new prices that people thought might be cheaper are actually massively more!

It is a shame that this is a missed opportunity by OR. I originally thought the new prices would be cheaper and encouraging to sellers of the FTTPoD products by the other companies. It seems my thoughts were mis-placed and instead of OR encouraging more take-up of the product they have actually priced it out of the range of ordinary residential people.

It is a shame that OR and others couldnt see FTTPoD as an opportunity for the end customer to share some of the cost of it.

I have never understood why these services are charging £100 to £200 monthly rental when in reality it should be a normal FTTP rental. We all know that fibre lines are less work than copper lines for engineers. Yet it feels like the full fibre idea is being choked out.

I hope that these companies start getting their acts together because probably in 5 years the demand for higher speeds will have increased and if OR arent going around laying fibre now then there is going to be a problem.
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Ignitionnet

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Re: Expensive Reality of UK FTTP on Demand Broadband Hits Home
« Reply #1 on: March 12, 2018, 11:14:00 AM »

I'm not sure anyone mentioned anything about install pricing being cheaper. Without the higher rental price and longer contract period more costs had to be front-loaded into install.

The rental charge from Openreach is the same as standard FTTP. These are business suppliers charging accordingly.
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j0hn

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Re: Expensive Reality of UK FTTP on Demand Broadband Hits Home
« Reply #2 on: March 12, 2018, 02:16:51 PM »

The install/build charges were always anticipated to be much higher, with shorter contact lengths meaning charges would be front loaded to the build charge. I don't know anyone who thought the build price was going to go down.

The overall cost (old build charge + 3 years rental vs new build charge + 1 year rental) was guessed to be similar, and in many cases it is similar. On the whole though the overall cost appears to have gone up.

The price changes are mainly designed to make multiple orders more cost effective. It means the new pricing should work out cheaper ifa bunch of neighbors chip in on a grouped order.
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