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New £10 Sky Fibre service with 25GB usage limit
Tuesday 09 December 2014 11:26:22 by Andrew Ferguson

Encouraging take-up of the fibre based services that are becoming available to an extra 45,000 to 50,000 homes per week across the UK is an interesting marketing exercise and Sky believes that introducing a usage capped service at just £10/month will encourage more people to sign up.

The usage limit is 25 GB per month, and we are assuming at this time that both download and uploads are included in the cap. Service is an 18 month contract and a £30 activation fee and £6.95 delivery fee apply, and the usual voice line rental at £16.40 per month.

The press release makes a comparison with the BT Infinity 1 20GB service, which the Sky service should match in terms of speeds since it is based on the same GEA-FTTC connection (i.e. up to 38 Mbps downloads and up to 9.5 Mbps uploads).

We know that capped products will appeal to those who are on a tight budget, but 25 GB of data is only 5 Netflix movies if you subscribe to their HD service, the NOW TV service uses slightly less data around 2 to 3GB per film. So unless your video streaming is fairly limited and your online gaming habit does not involve buying games as digital downloads then you might manage, i.e. good old fashioned web browsing will be fine, but then that raises the question why pay for the premium for a fibre based service?

Update 12:30 We have had a reply to our questions, which indicate that if you exceed the 25 GB cap you will be notified and if you exceed the cap twice in six months you are automatically upgraded to Sky Fibre Unlimited (£20/month). The usage allowance counts both downloads and uploads towards the 25GB limit and finally if you want to voluntarily upgrade to a faster service or the unlimited products this is possible within the minimum term.

Comments

Posted by csimon about 1 year ago
So a neat way of getting people onto the full service. Entice them in with a cheap package but low limits and automatically move them to the more expensive package if they trip over those limits. Bet the marketing team are celebrating tonight!
Posted by zyborg47 about 1 year ago
I really thought we have gone past capping by now. Seems like it is going backwards.
Posted by baby_frogmella about 1 year ago
@Csimon, Zyborg
Nothing wrong with having usage limits as plenty of users out there (eg 99 year old biddies) who have very light usage eg just checking emails, internet banking etc. Not everyone hammers their line 24/7 downloading torrents. Horses for courses...
Posted by timmay about 1 year ago
I think this is a good move, it's the stepping stone onto a faster service that some will need to make the jump to FTTC. Especially if their usage is low and the price of unlimited service is putting them off the upgrade.

Remember there are people out there that would benefit from FTTC just to lift their speed above the less then 2Mbps that ADSL offers them. Many will see the benefit and eventually their usage will increase due to all the new things that they can do and they would then see a need to pay for unlimited.
Posted by generallee94 about 1 year ago
It is a good move, I manage many broadband connections and a lot of them don't even use 10GB a month, some of those being on 50mb+ services too.
Posted by TheEulerID about 1 year ago
There will also be quite a large number of light-usage customers who get unsatisfactory speeds from ADSL2+ for whom a cheap FTTC option will appeal.
However, at this price the margins will be very thin (especially given that 1/6th of that price is VAT), so I've no doubt Sky are anticipating a lot of upgrades.
Posted by andrew (Favicon staff member) about 1 year ago
Margin is thin on the broadband, but less so on voice line rental.
Posted by joe_pineapples about 1 year ago
Good way for some people to see how good/poor their fibre speed in reality would be, before bothering to commit to the full package.
Posted by oliver341 about 1 year ago
Good move by Sky. There are a lot of rural exchanges with low usage users on low speeds who are being upgraded via BDUK and are wanting a bit more speed. That Sky manage to undercut Infinity 1 by £5 is impressive in itself.
Posted by NilSatisOptimum about 1 year ago
Good news, for the thousands of 99 year old low usage users on rural exchanges out there. The marketing spin makes me dizzy

Still more expensive than the FTTC unlimited package I'm on.
Posted by _Resonance_ about 1 year ago
Would be a good idea for Sky to exclude Now TV use, would encourage take-up. I believe BT do this for their TV service.
Posted by Kr1s69 about 1 year ago
Surely plusnet's £15 option is a better choice where available? Unlimited and a faster upload for an extra £5. There's normally offers available too to get the price down further.
Posted by zyborg47 about 1 year ago
@baby_frogmella, I know off two households still on dial up and some that may use about 5-10Gb a month. But I still thought the capping age had gone now.
Posted by zyborg47 about 1 year ago
@timmay, people have not really been rushing to FTTC as quick as BT and other providers thought they would. Still a lot of people who can get FTTC and still fine with ADSL. Strange mind you that Talk Talk still seems to miss out FTTC on their leaflets, like the one I got today, just ADSL and their TV service.
Posted by leexgx about 1 year ago
for most its the cost,

for a lot of them it works fine on ADSL

if your in the the 4mb+ ADSL club for my its Why should i pay £5-£15 more all it be is faster (
for single HD streams its more then what they need well for now)

most people that have upgraded to fibre is because there PC is slow....(not there ADSL connection) when emm it is there PC that is slow and find that out when they get the faster connection and PC is still slow (i had at least 2 customers back go back to ADSL because there PCs did not go faster)
Posted by Sara_Pattinson about 1 year ago
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Posted by broadband66 about 1 year ago
I am on an up to 16Mb connection and only use a max of 2.5GB / month. Don't need a faster speed so am not tempted by FTTC/H, but at £10 it is getting closer to what I would want to pay. What is wrong with caps if it is well advertised?
Posted by broadband66 about 1 year ago
@leexgx You didn't advise your customers very well if they thought that a faster connection would speed up their computers.
Posted by toddy75 about 1 year ago
I'd prefer a reduced speed unlimited fibre. I have no use for 30+Mbps and would be happy with 5 to 10Mbps but can only get 300k on adsl, so I have to put up with a slow connection or pay for service I will never make full use off.
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