Illogical full fibre pricing

[idol+the+bear]

The current advertised monthly cost of Sky Full Fibre Broadband doesn't make much sense to me -

Fibre 100 £41

Fibre 145 £28

Fibre 300 £40

Fibre 500 £34

Fibre Gigabyte £44

[TimmyBGood]

@idol+the+bear 

That's correct, because it's based both on somewhat illogical wholesale pricing and sales psychology: for example having 500Mbs as a cheaper option then permits upselling to gigabit at the end of the initial minimum contract term as a renewal.

Openreach/BT Wholesale are incentivising ISPs to resell as much fibre as possible because this pushes the national rollout along and helps towards the huge infrastructure investment required.  Incremental speed increase  on an existing fibre circuit actually only has marginal (if any) additional cost to the supplier.

[Ian2240]

A new company can supply 900bps for £29 plus £10  anytime time call's

latest offer from Sky 900 £69 plus £14 calls

is it me or is Sky priced off the planet !

Openreach I changing very soon to Full Fibre, what happens to our copper broadband?

anyone know please .

[jamesn123]

@Ian2240 

Can I ask what company that is? Its likely to be an altnet, these companies burst into the market, spend millions on building their own infrastructure and on board customers as unsustainable price points so that they can please the shareholders with high numbers before they either go bankrupt or up the price after your intial contract period.

Granted the price for Sky at £69pm is silly high though.

Your copper broadband will remain until you decide to upgrade to full fibre. At that point your copper line gets disconnected at the cabinet/exchange and becomes redundant. 

[TimmyBGood]

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@Ian2240 wrote:

A new company can supply 900bps for £29 plus £10  anytime time call's

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An altnet can choose to do so because they don't have to cover wholesale rental: as @jamesn123 indicates the business model is to burn through startup and venture capital to lay cable and gain subscribers as fast as possible, without worrying if that's sustainable long term.

[Ian2240]

What about the fortune selling on old copper wire ?

[TimmyBGood]

@Ian2240 

Hugely offset by the recovery and recycling cost: each individual phone pair is a small amount of metal coated with plastic.

There's likely to be some money in exchange hardware and backbone cable.

[Ian2240]

Oh come we taking the country  billions of mts of copper

[cookiemonsteruk]

@Ian2240 

https://www.theguardian.com/business/2024/sep/29/bt-recycling-deal-surplus-copper-cables

Bt/openreach have already received £105 million 

[TimmyBGood]

@Ian2240 

And if large amounts become available, the price goes down.

There are estimates of some billions of pounds of potential value globally, but that relies on a high demand price and typically fudges recovery costs and the difficulty of recycling in bulk (particularly getting rid of all that plastic without being hugely polluting)

Even if Openreach go down that route, I doubt it will be more than a fractional offset of the cost of the national FTTP rollout (given in that article as £15 billion, with perhaps a tenth of that in potentially recoverable copper)