BT upset at Ofcom's wholesale leased-line price cap plan BT is worried about Ofcom's plans to tighten its control of the national telco's wholesale Ethernet services prices outside of London. The communications watchdog warned today that it had proposed to come down hard on BT charges for products using leased telecoms lines - which provide high-speed links for businesses including …
Lol, almost. That could be taken either way though. It might also serve to demonstrate how thin BT's margins are. If you want guaranteed 24/7/52 availability you won't get it at bargain basement prices. BT probably can't afford to implement redundancy in its links and servers.
You know, instead of the quantitative easing farce the BofE keeps doing and giving the money essentially to other banks, what it should do is buy BT, stop this monopolistic crap regarding broadband, expand the network vastly and catapult us into the next century as a market leader in technology.
The prices they charge for anywhere outside a city centre are outrageous. In any area where they have some competition the prices plummet even with the same sort of distances involved.
I've seen a quote for leased line go from £31k per year to £12k simply because they had competition. In areas where they don't have such competition, organisations like schools don't have much choice!
Hmm. If the prices were outrageous and profits were vast, there would be competition. There is lots of competition in telecoms - so it's almost certain that where there is none, there's no money to be made.
That probably, in turn, means that BT make minute margins in city centres and healther ones elsewhere - giving an overall margin that's acceptable. If a company doesn't make acceptable margins on a product, it stops selling it.
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