It has been a long time since Openreach launched a new product and while the technology behind the new product is not changing it may provide a nice intermediate price point for some providers.
As of 16th January 2016 there will be a new wholesale product with a FTTC (or FTTP if that service is available) of 55 Mbps download connection speed and 10 Mbps upload speed. The existing 40/2, 40/10 and 80/20 products are continuing and while no reason has been given for the launch our suspicion is that the aim is to try and tempt people to upgrade without going for the full price increase that jumping to the 80/20 product carries with it.
|Openreach product||Monthly wholesale cost (ex. VAT)|
|GEA-FTTC and GEA-FTTP 40/2||£6.90|
|GEA-FTTC and GEA-FTTP 40/10||£7.40|
|GEA-FTTC and GEA-FTTP 55/10||£8.40|
|GEA-FTTC and GEA-FTTP 80/20||£9.95|
The above pricing only covers the port cost and getting the data back to the handover exchange, on top of this there is the wholesale costs as incurred by BT Wholesale, TalkTalk, Sky or whoever is picking up the data from the handover node. The 80/20 product usually carries a £10 to £15 price premium at the retail level, so squeezing in a product that might just be an extra £5 per month could result in significant upsell.
As for which retailer requested the new speed point, our betting is that it is BT Retail who will target this at BT TV Total Entertainment where live streamed UHD content can need 44 Mbps of bandwidth (pre-recorded UHD streaming is generally a lower bit rate).