Broadband News

BT Retail's worst kept secret is out...

After a week of various leaks and rumours BT Retail has officially released details of its latest round of price-cuts. Full details can be read in the BT Press Release here.


Price (inc VAT)

Bandwidth Allowance (GB - GigaByte)

BT Broadband Basic £19.99 1GB
BT Broadband £24.99 15GB
BT Yahoo! Broadband £26.99 15GB
BT Broadband 1Mb £28.99 30GB
BT Yahoo! Broadband 1Mb £29.99 30GB

The pricing looks just like most other ISPs, though the inclusion of the 15GB and 30GB limits make things a bit different. The new bandwidth limits come into effect in 2005, though the 1GB limit of Broadband Basic will start in 2004. 15GB is likely to cover the vast majority of consumers, and for heavier users the pricing seems designed to push them onto the 1Mbps product range. The fact that BT Retail will no longer have an unmetered product will be the last straw for a number of users, but then one must wonder if BT Retail would actually be happier with those users moving to a different service. A Wanadoo press release today, indicates that in their own research 45% of users can fit into a 1GB monthly allowance, and that the vast majority actually can fit under the 2GB limit.

The biggest change apart from 1Mbps been available at £28.99 and £29.99 is that the product range now has free activation and a free USB ADSL modem. This is certainly a strong response to the decreasing market share that BT Retail has in the ADSL marketplace, though in raw numbers of users it is still gaining, just not as fast as say Wanadoo. Wanadoo alone is claiming that more than 25% of new ADSL users are signing up with them.

So while the BT Retail pricing does not break any amazing price point, that another provider has not already broken, it does reduce the cost of ADSL to a lot of ADSL users. The price reduction is welcome, and is very likely to trigger another round of providers looking at their own margins.


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