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February 12, 2010

BT Infinity pricing going to make it hard for rivals to compete

BTs fibre broadband prices are going to be hard for their rivals to match according to Zen Internet.

Speaking to PC Pro magazine, Andrew Saunders, head of product development for Zen Internet said that he was surprised that BT Retail had gone in so low with it’s BT Infinity fibre broadband pricing with prices starting at just £20 per month, which is only slightly more expensive than they charge for ADSL2+ lines.

However the problem with this is that for broadband providers who rent lines from BT Wholesale can pay a minimum of just £5.88 for an ADSL2+ line yet the charge for a fibre optic line is going to be between £13-£17 which means that they are very unlikely to be able to match BTs pricing for the service but if they want the business it looks like they will have to go in lower with their prices than they had hoped.

The reason for the aggressive pricing from BT is reportedly to help get people on board and choosing fibre that they are spending £1.5 billion on installing in the next few years.

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- Filed under: Fibre broadband,Home Broadband

Author: Mark @ 11:53 am

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