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O2 Home Broadband Price Increases
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Old 03-02-2011, 23:00   #1
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O2 Home Broadband Price Increases

New rates here.

FAQ Here.

The rationale behind it is interesting.

Quote:
Why are you putting the prices up?


The use of the internet has changed dramatically in recent years, and in order for us to continue to give you the level of service that you’d expect from us we need to continue to invest in our network to keep up with demand.

Since launching Home Broadband and Home Phone we have maintained the same price levels across our packages whilst offering market leading products with unlimited or very generous download levels; however we cannot continue to maintain this service level at the same price in the current climate. Whilst the prices are increasing, we still remain competitive against other Internet Service Providers. We’re always striving to give you a great customer experience.
It's interesting in that they've taken the opposite approach to Virgin Media. Virgin Media have raised speeds, lowered prices, started application shaping and kicking off people who use the service too much during peak periods while still insisting that they sell an unlimited service, O2 have decided to raise their prices to cope with the higher usage.

Respect to them for their sincerity on this score, I suspect Virgin's method is the better one from the PR angle though
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Old 04-02-2011, 00:27   #2
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Re: O2 Home Broadband Price Increases

Interesting, though I'm thinking a lot of "WTF" right now. If I'm reading this right they're only putting prices up by between 27 and 58p a month... Hardly worth mentioning given they put prices up by £3 a month during the year I was with them.

I do commend their approach though, as they maintain good levels of latency and contention throughout their network via sensible internal targets. Mind you I thought they too have introduced protocol-based traffic management on their LLU product a while ago. Either that or usage caps, I can't remember, but there was something bad in the T&Cs of the new home broadband product that made me cringe...

[Edit]
Yeah, O2 have a 100GB/250GB FUP on their "Unlimited" packages now. Urgh. They're not really that much better eh?
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Old 04-02-2011, 00:28   #3
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Re: O2 Home Broadband Price Increases

Quote:
Originally Posted by qasdfdsaq View Post
Interesting, though I'm thinking a lot of "WTF" right now. If I'm reading this right they're only putting prices up by between 27 and 58p a month...

I do commend their approach though, as they maintain good levels of latency and contention throughout their network via sensible internal targets. Mind you I thought they too have introduced protocol-based traffic management on their LLU product a while ago. Either that or usage caps, I can't remember, but there was something bad in the T&Cs of the new home broadband product that made me cringe...
The legacy unlimited products, which I'm a customer of, are getting increased by far more.

They do not appear to have ever actually implemented the shaping on the new LLU products. Go figure.

EDIT: Older unlimited legacy packages going up by 24 - 27%.
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Old 04-02-2011, 00:36   #4
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Re: O2 Home Broadband Price Increases

Be interesting to see if they do the same for Be...
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Old 04-02-2011, 00:36   #5
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Re: O2 Home Broadband Price Increases

Yeah, I was on one of those "legacy" products, hence them introducing the "new" packages at a higher price and with fairly low FUP limits was what made me cringe.

Got a link to the new legacy prices? They don't seem listed on that page. The old packages are far more competitive than the new ones and to be fair I'd be happy to pay 24-27% more, when I was there I was getting between 4 and 8 times faster service from my £17.50 to O2 than my £25 to VM.
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Old 04-02-2011, 00:52   #6
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Re: O2 Home Broadband Price Increases

They aren't as the old packages aren't sold anymore. They are notifying legacy customers individually.
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Old 04-02-2011, 00:55   #7
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Re: O2 Home Broadband Price Increases

Still cheaper than be broadband If with o2
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Old 04-02-2011, 02:04   #8
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Re: O2 Home Broadband Price Increases

The old "Unlimited" top package was £17.50 a month after £5 O2 discount IIRC, with a ~25% price rise that'd pretty much put them in line with Be's £22.44. If not with O2 then it'd be 22.5 + 25% = £28.13 which isn't quite so competitive. But still, that'd be truly unlimited + a free wireless N router which you still don't get with Be

O2's new "Unlimited" tariffs aren't a fair comparison as they're not truly unlimited (100GB FUP on one of them)
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Old 04-02-2011, 14:14   #9
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Re: O2 Home Broadband Price Increases

My own is going up from 15GBP pre-VAT rise to 18GBP post-VAT rise and after this increase.
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Old 05-02-2011, 21:38   #10
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Re: O2 Home Broadband Price Increases

Might it not be putting money into the O(2 coffers for some deal with BT for LLU Infinity?
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Old 05-02-2011, 23:42   #11
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Re: O2 Home Broadband Price Increases

There's no need to make a 'deal' with BT over Infinity, the VDSL product is open access and available.

Telefonica appear to be waiting for a newer variant that will give them more control over the product, Virtual Unbundled Local Access.

They do need some cash for backhaul upgrades though, migrating to 10GbE or n x 1GbE where there aren't enough ports for all the 'n' isn't cheap.
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