Postcode Pricing (Market 1)

[#1]

Having started this topic for a minor rant (!) I have no idea what "cited by a super user" means. It does however seem rather more complicated than I first thought and all your comments and replies are much appreciated.

[#2]

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@TeeGee wrote:

I have no idea what "cited by a super user" means.

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It just means that one of the Superusers has raised the topic with the Plusnet management team to get a response.  The flag being posted here is just to indicate that the problem has been noticed.

[#3]

The totally unjustified rip off charge levied on customers living in Market A areas is an ongoing sore to me. I have no confidence that the Superusers will get anywhere with raising it directly with Pluanet but I would love to be positively found to be wrong.

What it really needs is the likes of Martin Lewis on the case or perhaps the TV programme 'Rip Off Britain' to feature Plusnet.

I know, I should just go elsewhere.

[#4]

It all depends on how you look at matters.  Market A classification is somewhat about Ofcom protecting consumers from BT Wholesale charging any old price they like in a geography where there is no alternative competition.  There is no competition in such areas because it is not economic for competitors to move into such areas.  See https://www.ispreview.co.uk/index.php/2017/06/ofcom-propose-deregulate-uk-wholesale-broadband-market...

Regardless of who provides service to these areas, it is more expensive per connection than providing service in more densely populated areas where there is economy of scale.  It you want to shout "rip off Britain" one could ask who is being ripped off here - the consumer or the provider - for I doubt that there is much in the way of profit to be had in Market A ... which is why they are Market A.

In every service you look at there is often a price differential related to geography - for example last time I looked, in North Cheshire, electricity is dearer than it is in central Manchester and reason given for that difference was the nature of the different distribution network.

The question I have taken to the SU discussion space is about clarity on cease charges in Market A, not Market A retail pricing.

[#5]

@Townman

As I understand it, I have asked Plusnet for clarification but they will not answer the question and hence put me right, Plusnet pay their BT colleagues exactly the same to provide my fibre connection as people living in the town 5 miles down the road. 

If this is not true then why is the additional costs explained in vague terms? I would really appreciate it if someone could explain where these extra costs come from, hence clearly justifying why Plusnet need to charge me more.

If it can be justified why am I always stonewalled or given an irrational answer?

[#6]

Fair arguments ... I've looked deeper ... I'll prod further! 

[#7]

The exchange I was originally referring to is MRCHL. A further new housing estate is being built as I type so new buyers are in for a shock when they seek an internet connection.

As ADSL come down the phone wire, any work has to be done at the exchange and it defeats me as to why (when internet access is near universal) that it costs more to provide a connection here than it does at at any other exchange. It also defeats me as to why JL can provide a cheaper service on this exchange  - via Plusnet.

I rest my case, m'lud.......

[#8]

They will only be in for a shock if they are foolish enough to want PlusNet's broadband service.

BT retail and all the other providers who use Openreach as the underlying infrastructure do not charge higher prices in Market A.

It's only PlusNet - who choose to cross subsidise their headline low prices by charging extra for Market A. The only explanation I can come up with for the decision, is that possibly PlusNet signed a (bad?) long term contract with BT Wholesale to pay more in Market A in exchange for lower prices in Market B. We can see Openreach's charges, but do not have access to the contract between PlusNet & BTW.

The other possibility is that the uplift is hard coded into the billing system, and no-one understands how to change it

[#9]

I don't think BTWholesale could do different prices for different companies. Openreach don't do ADSL.

I think A&A used to charge more / have lower quotas for 20CN than 21CN, which made sense since it's the 20CN bandwidth that's more expensive than 21CN bandwidth. It will be Market A areas that only have 20CN available, but some Market A areas will now have 21CN and/or FTTC. And it's not like Plusnet aren't going to know what service(s) any particular line can get.

What's wrong with the explanation being simply that Plusnet charge more to get more money? While Plusnet leave everyone to assume that there must be some other more complicated reason.

[#10]

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@Townman wrote:

Fair arguments ... I've looked deeper ... I'll prod further! 

As discussed here: https://community.plus.net/t5/Broadband/Market-A-exchange-being-reclassified-as-a-low-cost-area/td-p..., some exchanges are being categorised as being in a low cost area despite having BT as the sole supplier. Very happily I'm  connected to one of them.

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[#11]

I think the relevant Ofcom consultation is the 2017 Wholesale broadband access market review

https://www.ofcom.org.uk/consultations-and-statements/category-1/wholesale-broadband-access-market-r...

Besides reducing Market A to about 2% of UK premises, it also says they won't be imposing any charge controls in Market A. It also says, yet again:

The charge control imposed in Market A applied to IPstream Connect only. See 2014 WBA market review Statement, paragraph 7.1 et seq.

Presumably people should be grateful that Plusnet have decided to stop asking some people to pay more for no reason!