Ofcom proproses new measures to make switching to best superfast deal easier
The superfast broadband marketplace has started to heat up in the last few months, with more and more attractive offers appearing every week and proposals from Ofcom look set to make it even more vibrant and hopefully drive the adoption of superfast broadband.
Summary of proposals that Ofcom is consulting on to drive competition in the superfast market.
- Reduce price of migrations for GEA (VULA) products by up to 80%
- Reduce minimum contract term from 12 months to 1 month for migrations
- Strengthen reporting of Openreach performance levels for installs and repairs to ensure no repeat of the poor performance levels of 2012.
- Later in July launch another consultation on wholesale line rental price controls
Openreach has charged £50+VAT for GEA-FTTC migrations since 2009, so a price cut to the region of £10 to £15 will be very welcome, particularly among early adopters who may be looking to switch superfast provider. The competition for your superfast broadband custom is increasing, as Sky has now started both billboard advertising and adverts on TV pushing their superfast services, and TalkTalk is also pushing their fibre services more heavily.
"Today’s consultation proposes not to set controls on the wholesale price of VULA. Ofcom believes the price of fibre broadband is currently constrained by the availability of standard broadband services, and by competition from Virgin Media’s superfast cable network. Ofcom is also concerned not to undermine the investment case for rolling out fibre. Instead, Ofcom proposes to maintain a requirement that BT’s charges for access to its fibre network are fair and reasonable."Ofcom on standard superfast pricing
For those thinking these changes may bring down the monthly fees for fibre services, there is no sign from Ofcom that this may happen, but reducing the cost of acquisition by lowering migration charge may be enough to stimulate the market, and see the share of superfast services for Sky and TalkTalk rise significantly from the approximate 5% share they both have compared to around the 86% market share of BT Retail.