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Speed boost...

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Re: Speed boost...

Interesting....to see how this is handled:

1) Anybody on a legacy 50 Mbps now 100 contract gets their connection cheaper than out of contract already 100 Mbps customers

2) The 50-now-100 customers are going to get stuffed with a price rise when they aren't looking to rebalance things

3) All existing out-of-contract 100 Mbps customers will see their bills cut to keep things fair

Any options I've missed?

 

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Re: Speed boost...

Of course, it could, as in the past, be the first step in a general speed boost for all.

100 to 200, 200 to ........

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Re: Speed boost...

The top tier users will got a boot to the balls no doubt (remember 100>120 then 120>152 then 152>200 then 200>300 while other got Doubled and 20Mb/s user got Tripled to 60Mb/s

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Re: Speed boost...

I suspect the 50>100 move is to match the forthcoming "starting speed" of 115/20 for Openreach FTTP?  Of course, with Openreach offering residential availability of 220/30, 550/75 and 1000/115 from 23 March this year (obviously FTTP areas only, but "already" 11% of UK properties) VM's reign as undisputed mass market speed champion is coming to a close.  

You'll see if you follow that link that Openreach pricing has tiers of 115, 220, 550, 1000.  VM could revise their speed tiers at similar price points perhaps offering 150, 350, 750 and whatever 1 Gbps+ they choose, but they may do nothing yet depending on the overlap of the FTTP footprint with cable.  Maybe we'll see further "free" upgrades, but I'm mindful that VM have always relied on unmatched speeds to avoid competing on standard pricing, so we'll see what happens.  I'm certain VM will automatically offer an 18 month "free upgrade" to the next speed tier to customers who say they are leaving to take on an Openreach FTTP connection, but apart from that I'm not so sure.

VM had ample chance to acquire on speed and retain through superior service, but chose to do the former not the latter.  I wonder what they'll do when FTTP rips the rug out from under the superior speed proposition, and they are an undifferentiated ISP with poor service and (potentially) high pricing?  Obviously there's the TV content, but I can't think of anything I watch that specifically requires VM - the only real monopoly power I can think that is left to the ISP/satellite companies is sport content, so I'm guessing that limited distribution sports content will be where the best margins are earned.  I don't follow sports, so I don't care, but sports fans had better start looking to save their pennies for the inevitable price hikes on sports packages, both because the supplier/distributors will price in more margin, but also because in this new reality all the distribution channels will be fighting to pay as much as they can to secure exclusive rights.

The other interesting thing is whether VM's more-than-annual and more-than-inflation price rises will be a sustainable business practice?  For ISP and telephony probably not, but again, sport fans may find themselves over a barrel.

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Re: Speed boost...

BT sport just took over WWE in the UK Sky are not happy. I can see that going up now. Amazon have football but i'd rather watch paint dry.
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