BT Wholesale would appear to have had the big price cutting axe out today. BT has published to Ofcom notification of price changes to its BT Central Plus products. BT Central Plus is currently only used by BT Retail for its Broadband products, and BT Yahoo!, so we can be sure that other providers will be looking closely to ensure no favouritism.
BT Central Plus is provided in a different way to most ISPs BT Central products. The Central Plus version requires the ISP to do less, and can link directly out to the Internet. The standard version is purchased in blocks suitable for 5000 users, the new capacity based pricing sells the product in 100Mbps blocks, with BT Wholesale telling the ISP when an upgrade is necessary because more capacity is needed.
The price cut of £46,500 on the standard BT Central Plus pricing, sounds large, but once divided between 5000 users it is a change of just 77.5p per month. With the capacity based pricing it is harder to work out the change, since it will depend greatly on the number of users sharing the 100Mbps segment. It would seem unlikely that BT Retail has much scope for large price cuts, but with the 1,000,000+ customers they have, a saving of perhaps £9.3 million per year will help balance the books.
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