£9.50 broadband woowee !

Discussion in 'Broadband' started by Stephen Hammond, Jan 31, 2011.

  1. Stephen Hammond, Jan 31, 2011
    #1
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  2. Stephen Hammond

    Gaius Guest

    The real COST to an ISP of providing an ADSL-delivered service is in the
    order of £25 to £30.

    So where do you think their margin is going to come from ?
    (Hint - There ain't no such thing as a free lunch.....)
     
    Gaius, Jan 31, 2011
    #2
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  3. How did you calculate this?

    - river.
     
    River Tarnell, Jan 31, 2011
    #3
  4. Last time I checked the bare technical; costs were, for a rather
    congested service, about £7.50
    Indeed.
     
    The Natural Philosopher, Jan 31, 2011
    #4
  5. Stephen Hammond

    Gaius Guest

    I didn't - these are internal costings within a certain UK ISP. The
    costs are calculated starting from the base of the wholesale price. That
    is - BT Wholesale's standard products. See BT's pricing website.

    This is a fully absorbed service costing. In other words, it includes
    all applicable overheads, allocated to an understood set of accounting
    rules. The auditors may see these rules, but not the public.....

    But back to the original point - how do you think the cheap and cheerful
    ISPs make their margins ?
     
    Gaius, Jan 31, 2011
    #5
  6. That is a nonsense assertion, since it makes inherent assumptions about
    the actual loading.

    If you connect 1000 subscribers to a 2Mbps pie, its a lot cheaper...

    By providing very little actual bandwidth upstream and almost no support.
     
    The Natural Philosopher, Jan 31, 2011
    #6
  7. Okay. When you said "an ISP", I assumed you meant the minimum cost for
    any ISP, rather than a particular provider.

    Could you reveal what price this ISP charges its end-users, and what
    service they provide for this price? Without that information I'm not
    sure how meaningful this figure is.

    - river.
     
    River Tarnell, Jan 31, 2011
    #7
  8. Stephen Hammond

    Brian Mc Guest

    : In article <>,
    : says...
    : >
    : > http://www.incahoot.com/home-broadband/
    : >
    : > :)

    : The real COST to an ISP of providing an ADSL-delivered service is in the
    : order of £25 to £30.

    Rubbish! LLU providers can (and do!) it for typically £13!
     
    Brian Mc, Jan 31, 2011
    #8
  9. Stephen Hammond

    Gaz Guest

    And Sky provide one of the finest unmetered products in the country for that
    price (to subscribers to their tv service). Of course, though they can allow
    the service to lose money as it effectively kills the churn rate for
    customers who take it up.
     
    Gaz, Mar 5, 2011
    #9
  10. Stephen Hammond

    FooAtari Guest


    I used to use Plus.net before LLU became available in my area and I then
    moved to Sky. They were not that bad. The FUP was a little annoying at
    times as a heavy user, having to schedule downloads overnight. But the
    connection was generally always fast and stable. I always thought there
    were pretty good value, and more than sufficient for an average user. My
    Dad still uses them and the service is pretty decent. There are far worse
    ISP's out there.
     
    FooAtari, Mar 5, 2011
    #10
  11. Yep - I've heard that Sky are pretty good but there's always a payback.
    One: their customer service (if required) is reputedly less than perfect
    - and standardised with a locked router.
    Two: to get the full advantage of Sky broadband you need to sign up to
    their TV service - which is fine if you want thousands of channel with
    "nothing on" and are prepared to pay six hundred quid or more a year for
    the privilege.
    You pays your money and takes your choice...

    George
     
    George Weston, Mar 6, 2011
    #11
  12. Stephen Hammond

    pete Guest

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    Sky's basic TV package is £19.50 a month, i.e. less than £240/year. So you're
    wrong to say "six hundred" since you don't _have_ to pay that much.
     
    pete, Mar 6, 2011
    #12
  13. True but you only get one "pack" with the basic option (one only out of
    a choice of sport , kids, music, whatever, etc.) Most people I know who
    have Sky have additional packs or the full works.

    George
     
    George Weston, Mar 6, 2011
    #13
  14. Stephen Hammond

    FooAtari Guest

    True the support isn't great. Fortunately I've never had to call them.
    Plus.net support is less than impressive as well.

    As for the router. Mine is a re-branded Netgear so I've never felt the
    need to change it, but I know many that have. Despite what Sky T&C's say
    I've never anyone have problems from changing their router.

    And yeah, you need to have Sky TV to get the best deal. Unfortunately the
    wife would never let me get rid of it, and I do like the range of
    motorsport on offer to me. So the cost of TV was a non-issue for me as
    already had it, and made sense to get their broadband as well that costs
    me a mere £7.50. Besides I wasn't offering it as a suggestion, just
    mentioned it's what I am using now.
    As previously mentioned, doesn't need to cost £600 a year. You don't need
    the full bundle to get cheap broadband. And "nothing on" is a matter of
    opinion really isn't it. I don't watch it much, especially in winter, but
    the wife finds no end of crap to watch...

    Anyway, as someone who had Sky anyway, I've have no complaints about
    their LLU ADSL. I've used a lot of IPS over the years, and the connection
    I get with the Sky is one of the best I've had. A fast and stable
    connections with as little restriction on use possible is what's most
    important to me.
    Sure do.
     
    FooAtari, Mar 6, 2011
    #14
  15. Stephen Hammond

    Gaz Guest

    Sky customer service is easily the best out of the big boys. If you go for a
    smaller isp, you often do get much better customer service in general, but
    you pay a big premium for it.

    They all follow the model of having a first line customer support who are
    impossibly stupid and unwilling to escalate problems without at least an
    hour of turning things on and off.
     
    Gaz, Mar 6, 2011
    #15
  16. Stephen Hammond

    Sean Black Guest

    Talk Talk go one better, their second level support does the same too
    :)
     
    Sean Black, Mar 7, 2011
    #16
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