Price rises on Openreach full fibre and other services
Price rises are never a welcome thing, but if the relatively small changes are what is needed to ensure those controlling the investment needed to build another sixteen million premises of FTTP in the next 7 years by Openreach release the money needed then it seems a good thing.
It’s our ambition to reinforce the UK’s position as a global leader for digital infrastructure. That’s why we’ve been preparing to withdraw our ageing copper network and to simplify and focus on providing modern digital connections including our new full fibre platform.
With the WFTMR giving us the certainty over pricing across our portfolio, we in turn can offer long term stability and choice for our customers. These price changes are a natural shift, and as a heavily regulated business the WFTMR has enabled us to make some modest price increases on certain legacy products to reflect the increasing cost of network maintenance and to encourage customers onto modern, digital alternatives. At the same time, we’ve also implemented price reductions on some of our physical infrastructure access products and we believe that these changes will encourage alternative networks to use our network to help them build and ultimately enable more of the UK’s homes and businesses to experience the benefits of faster and more reliable broadband.James Lilley, Director Managed Customer Migrations, Openreach
Fingers crossed once the roll-outs scale up and take-up increases to the point where more copper services are retired we might see these price rises reduce. The complexity of visiting and installing FTTP in so many homes is something Openreach should have a good handle on already and the Salisbury massed switch to FTTP trial is designed to reveal more of the unknowns especially for households who are not traditional early adopters.
While the majority of prices have shifted up slightly and no doubt every penny will get passed onto the public there is the odd decrease in price. We are listing some of the major price changes for the FTTP products and have done the maths to show the monthly price difference (excluding VAT). The vast majority of the price changes take effect on 1st July 2021, i.e. Openreach has to give 3 months notice of changes.
- ALL PRICE CHANGES ARE MONTHLY AND EX VAT
- 35.4 pence decrease for GEA-FTTP 40/10 in locations GEA-FTTC 40/10 service is available
- 181 pence increase for GEA-FTTP 40/10 in locations where GEA-FTTC 40/10 is not available. This marks the end of the discount in areas where GEA-FTTP was the only superfast option from Openreach.
- 16 pence increase in GEA-FTTP 80/20
- 23 pence increase in GEA-FTTP 330/50
- 29 pence increase in GEA-FTTP 1000/110
- 14 pence increase in SOGEA 40/40
- 15.5 pence increase in SOGEA 80/20
- 20.5 pence increase in SOGEA 330/50
There are also some changes in the PIA pricing structures but only those consuming the PIA product for their own FTTP roll-outs will be able to calculate the actual impact of a 2 bore spine duct rising from 18p per metre to 19p per metre.
The price change in the GEA-FTTP 40/10 service is the one that is likely to be most visible at the retail level and as the 40/10 services are also so popular due to the price rather than the massive speed it is going to upset the most people.