Broadband News

Fibre on Demand a cautionary tale

  • Wednesday, November 15, 2017 10:08 AM
  • 1 comments

Fibre on Demand when first launched many years ago proved too popular and with limited staff resources we believe the pricing was shifted upwards to discourage all but the very serious business customer. Two weeks ago a new set of Openreach pricing appeared and with the monthly cost matching that of the native FTTP products lots of people were once again excited.

We did cover the FTTP on Demand build charge in our original item, but feel that we need to explicitly add something that was not in the original item, we believe that once you work out the total cost of ownership over a couple of years, that the new pricing may be no different to the previous model. In short while the monthly cost has come down the costs installation will go up. The allowances made for other premises that will be able to order native GEA-FTTP once you have got your service up and running will mean that for some the new pricing will be better, but for a lone business with no other premises on the drop point it is likely to be worse.

Another cautionary note, the main consumer of FoD to date has been BT Wholesale but no firm pricing has been released yet, and as BT Wholesale includes backhaul they may make the decision that people ordering FoD are likely to be heavy data users and price things accordingly - hence why if you look at FTTP packages for business versus consumer at identical speeds the business will invariably be higher since things like bandwidth allowances are generally better.

The new FoD model is also different in that once once a FoD customer has gone live on a fibre manifold/drop point (and Openreach as part of the build may add others without increasing cost to the FoD customer) that other addresses will gain access to native GEA-FTTP at the normal install cost and monthly fees

Comments

My installation cost just went up from 1500 to 8000 pounds with this new pricing scheme. This far exceeds any saving on monthly subs !

  • drsamwaa
  • 8 months ago

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