Plusnet pricing

[#1]

Plusnet won't be taking any prices they charge to their customers straight off a wholesale price list.

I also think it's very unlikely that Plusnet will be making a loss on all their customers in the low-cost areas, which must be about 90% of their customers.

[#2]

it's very unlikely that Plusnet will be making a loss on all their customers in the low-cost areas

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And yet they give free broadband in those areas - there is no charge for broadband, just the £18.99 land line charge. So the land-line is subsidizing the broadband.

[#3]

I am a bit unclear about this as stated here http://www.ispreview.co.uk/index.php/2017/06/ofcom-propose-deregulate-uk-wholesale-broadband-market.... as published on June 22nd 2017 and certainly any changes won't have taken effect yet

Ofcom’s Proposal for Market A

We are proposing an SMP obligation requiring BT to provide network access on reasonable request and on fair and reasonable terms, conditions and charges. In considering what fair and reasonable means in relation to charges, we would expect to assess this on the basis that charges were not set at such a level so as to not constitute a price squeeze.

In addition, we propose that BT provide access in accordance with such terms, conditions and charges as Ofcom may from time to time direct and comply with any direction Ofcom might make under this condition. We consider that it is appropriate for this SMP condition to include the power for Ofcom to make directions in order that we can secure the supply of services and, where appropriate, fairness and reasonableness in the terms, conditions and, charges of network access. The proposed condition includes a requirement for the dominant provider to comply with any such direction(s), so any contravention of a direction would constitute a contravention of the condition itself and would therefore be subject to enforcement action under sections 94-104 of the Act.

We envisage that this obligation would apply to all WBA services in Market A whether supplied using ADSL/copper or VDSL/fibre [FTTC] services. In practice, however, these requirements will largely apply to copper WBA products as there are limited handover points for fibre services within Market A

[#4]

Would it make much difference if they said there's no line rental, but the broadband price is now £18.99 (for the first however many months)?

Plusnet probably make very little profit from their non-landline customers, even with the extra £2.50, most other providers probably don't even do separate broadband with your phone with someone else. All the costs/profit being moved into the "line rental" element is not unique to Plusnet.

[#5]

Plusnet probably make very little profit from their non-landline customers, even with the extra £2.50, most other providers probably don't even do separate broadband with your phone with someone else.

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In non-low-cost areas Plusnet broadband without line rental starts from £20.99 per month - that's 50% more than a low-cost area! That's pretty much the same thing as not doing separate broadband.

It is also £2 more than Plusnet charge for line rental + broadband in low cost areas. Also it is more than John Lewis charge for their line rental + broadband package.

[#6]

Ofcom's proposal for Market A areas is open for comment until September, and whatever is decided won't come into effect until April 2018 at the earliest. Any significant changes are likely to be phased in over a number of years, so although it is welcome that they are looking at the issue, it is also no benefit in the foreseeable future.

[#7]

And also all the 20CN ADSL1 equipment is supposed to get replaced with WBC ADSL2+ over the next couple of years. The current Ofcom charge controls only apply to 20CN ADSL1.

It's also quite possibly that even when Ofcom change their market remedies, Plusnet will keep doing what they've always been doing, just like how they've carried over the non low-cost pricing to FTTC.