Race to the bottom continues...

Tacitus · Oct 07, 2009, 10:27:30

I see Demon have now cut their prices.

In August when I called them for my MAC, I was passed to retentions who offered me a deal for some £15 per month, but this would have meant me being on a new, according to them, 12 month contract. Funny how they were wrong and it would have been a 24 month one.....

I took the view that having been with them since the days of dial-up they could have done this sooner and I migrated to iDNet. OK I don't get the same allowance but I never used it all anyway and, I don't have the lottery that was Demon's customer service.

The race to the bottom continues.....

Rik · Oct 07, 2009, 10:31:40

They've obviously decided where they want to position in the market, Tac. Personally, I prefer small and personal, even if it does cost more. Having spent many a 'happy' hour queuing to speak to an automaton at Sky, I know which I choose.

Tacitus · Oct 07, 2009, 10:43:29

Quote from: Rik on Oct 07, 2009, 10:31:40
They've obviously decided where they want to position in the market, Tac. Personally, I prefer small and personal, even if it does cost more. Having spent many a 'happy' hour queuing to speak to an automaton at Sky, I know which I choose.

I agree and see them expanding their LLU operations with C & W. They seem to be looking at O2s inroads in the BB market and it's here that I think they'll have an uphill struggle.

My real worry is how BT/OR are destroying the smaller operators who are dependent on them. I doubt it's a deliberate strategy, simply a 'couldn't care less' attitude. That said, the proliferation of BT_Care people who've suddenly sprung up on TB suggests they may be getting the message. Trouble is, given their financial problems they might have left it too late.

Rik · Oct 07, 2009, 10:56:07

I agree with you on the damage being done to ISPs like IDNet and A&A. It's bordering on criminal that BT can get away with this kind of behaviour.

Tacitus · Oct 07, 2009, 11:45:50

Quote from: Rik on Oct 07, 2009, 10:56:07
I agree with you on the damage being done to ISPs like IDNet and A&A. It's bordering on criminal that BT can get away with this kind of behaviour.

What could happen is that we see some consolidation in the LLU market. Be are already offering their network wholesale, at unrealistic prices. With a few takeovers a rival to BT could emerge, one able to offer an alternative to BT wholesale at more realistic prices. With the backing of Telefonica Esp and, a falling pound, it could be that O2 will emerge as a serious rival in the wholesale market.

It might be that possibility that has woken BT up. Ironic really since O2 is the old Cellnet mobile division of BT, yet another example of the shortsightedness of UK management coming back to bite them.

dujas · Oct 07, 2009, 12:49:14

I can't see 02 being a major player in the wholesale market when its retail prices are so low.

You have to remember that LLU pricing is cheaper because they can 'cherry pick' the most profitable exchanges to put their equipment into. BT is stuck with the USO and has to support thousands of exchanges that probably barely make a profit; could see a Royal Mail type situation developing here.

Tacitus · Oct 07, 2009, 14:11:30

Quote from: dujas on Oct 07, 2009, 12:49:14
I can't see 02 being a major player in the wholesale market when its retail prices are so low.

Maybe but I wouldn't rule out Telefonica being more ambitious as time goes on.

Quote from: dujas on Oct 07, 2009, 12:49:14
........BT is stuck with the USO and has to support thousands of exchanges that probably barely make a profit; could see a Royal Mail type situation developing here.

Unfortunately you may be right.

Rik · Oct 07, 2009, 15:01:54

I agree. IAC, how much do O2/Be want to sell a wholesale service when they could have the retail customers instead?

David · Oct 08, 2009, 23:18:46

This makes a lot of sense to me...will follow with interest