ukonline launch £9.99 broadband no cap

[Chrysalis]

ukonline have launched 512kbit broadband for £9.99 which has no cap, this is a indication of how much bandwidth really does cost when BT is removed from the equation.

News source http://www.adslguide.org/newsarchive.asp?item=2194

[Chris W]

sounds like a good deal....

only part that puts me off is:

Originally Posted by User Policy

You acknowledge and agree that we run port-blocking on all of our Broadband Services in order to maintain quality of service for all of our customers, so you will not be able to run a mail or web server. We currently block ports 25, 80, 8080 and 3128.

[ian@huth]

Originally Posted by Chrysalis

ukonline have launched 512kbit broadband for £9.99 which has no cap, this is a indication of how much bandwidth really does cost when BT is removed from the equation.

News source http://www.adslguide.org/newsarchive.asp?item=2194

I can remember just a few years ago that supermarkets were selling loaves of bread at under 10p each. That didn't mean that it was an indication of how much it actually costs to bake, wrap, deliver and sell a loaf of bread and make a profit on it.

Have you stopped to think that this may be a massive loss leader to tempt customers onto their service and then rely on inertia to keep them there when they increase the prices and introduce usage guidelines in the not too distant future.

No ISP can sustain such a price particularly when giving cut price (£25) setup and a free ADSL modem.

[jtwn]

Thats a fair point, but look at various other countries, where those prices are the norm?

[scrotnig]

Originally Posted by jtwn

Thats a fair point, but look at various other countries, where those prices are the norm?

No point comparing this country with others, the technologies and market conditions are totally different.

[ian@huth]

Originally Posted by jtwn

Thats a fair point, but look at various other countries, where those prices are the norm?

But we don't live in other countries, we live here.

I can just imagine members posting on forums in other parts of the world who are saying that their broadband prices are an absolute rip off and quoting the fact that it only costs £9.99 in the UK.

[Hans Gruber]

Originally Posted by ian@huth

I can remember just a few years ago that supermarkets were selling loaves of bread at under 10p each. That didn't mean that it was an indication of how much it actually costs to bake, wrap, deliver and sell a loaf of bread and make a profit on it.

Have you stopped to think that this may be a massive loss leader to tempt customers onto their service and then rely on inertia to keep them there when they increase the prices and introduce usage guidelines in the not too distant future.

No ISP can sustain such a price particularly when giving cut price (£25) setup and a free ADSL modem.

Some people won't be happy till we're all capped at 5gb a month and paying £100 for it. Then we'll all be able to sleep easy that the ISPs are pulling in a fair profit.

[ian@huth]

Originally Posted by Hans Gruber

Some people won't be happy till we're all capped at 5gb a month and paying £100 for it. Then we'll all be able to sleep easy that the ISPs are pulling in a fair profit.

Being realistic isn't being negative.

[Chrysalis]

Because their isnt BT in the middle inflating bandwidth costs £9.99 is profitable as the average user will use low amounts. Easynet have been in the game long enough to know whats profitable and what isnt.

[ian@huth]

Originally Posted by Chrysalis

Because their isnt BT in the middle inflating bandwidth costs £9.99 is profitable as the average user will use low amounts. Easynet have been in the game long enough to know whats profitable and what isnt.

Which planet do you live on Chrysalis?

Originally Posted by Easynet Group Accounts

Operating loss for the Group declined to £13.9 million (2003 loss of £15.1 million)

[Chrysalis]

forgot to mention this

Strong cash balance of £40.3 million (H1 2004 £40.1 million).

- On track to turn cash flow positive during the second quarter of 2005
and to turn EBIT positive by the end of the year.


their long term plan is good and they have money in the bank.

[Kliro]

Where is this service actually available?

[ian@huth]

Originally Posted by Chrysalis

forgot to mention this

Strong cash balance of £40.3 million (H1 2004 £40.1 million).

- On track to turn cash flow positive during the second quarter of 2005
and to turn EBIT positive by the end of the year.


their long term plan is good and they have money in the bank.

Those are only facts that were in their Balance sheet and do not reflect the new pricing they have just announced. Very hard to change an operating loss of that extent into an operating profit in that timescale with price reductions of that magnitude.

[Chrysalis]

its not a price reduction its a new product, they still charge 19.99 on ipstream exchanges where BT is involved so it shows its not a loss leader, its just a reflection of not having to pay for inflated costs on bandwidth.

[gazzer]

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(i'd say this looks impressive)