We have had press releases from two providers so far, Entanet and Zen Internet. Both of whom are leaving their Office range pricing as it is, after the price rises of upto 32% announced last week by BT Wholesale.
In the case of Entanet this appears to mean that their Office 2000 product will actually be sold at a small loss. Though this may be only for a short while, depending on which of the new pricing models the provider chooses.
We expect more providers to absorb some or all of the price increase, though doing so may send the wrong signal to BT Wholesale. The price rises have caught providers out, though whether Ofcom will allow BT to put the raises through is another matter. Unfortunately if Ofcom blocks the price rises it will be going against its own calculations for maintaining a margin between Datastream and IPStream product ranges.
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