too many people think broadband costs are only what wholesale charge for the port.
there is 2 obvious reasons.
1 - burst speed costs money, it increases peak time demand so as such increases backhaul costs. this is something a lot of people on this forum have never understood.
2 - even if all operational costs were equal, a retail service isnt about mirroring costs, its about maximising profits so the retailer can charge the customer more as they getting more for their money, its as simple as that, a retail price doesnt have to bear any relation to wholesale cost. the main driver of pricing is actually supply and demand. This is shown e.g. on line rental where wholesale costs are lowering but retail are increasing.
To me it makes more sense plusnet would provisioion 40/10, and its a shame they dont because a 40/10 service e.g. is a way to get unlimited and force a misbehaving line to fast path, so lets say a line syncs at 58/12 but interleaved, the customer could change the speed to a capped 40/10 and get fast path back for better performance. That wont work if the underlying provision is still at 80/20.
Edited by Chrysalis (Wed 25-Jun-14 15:45:27)