FTTP On Demand - Without the high monthlies?

Hi,

Bit of a weird question, but from a financing point of view...

Is it possible to order FTTP On Demand without the high monthly cost?

As advertised, there's the large install cost, and then a high monthly cost for 24 months before being re-graded to a “native” FTTP service.

What I would like is to pay an even larger install cost, and then native FTTP pricing from day1.
Same total spend, but just all paid up front.

Or even, what about just paying a massive install cost and then having no 'service' on day1 but a line that exists and can be ordered with any regular OpenReach FTTP ISP.


A strange question I know, but from a financing perspective a higher initial one-off with reduced ongoing commitment is easier to stomach.

Thanks.

Presumably you're talking specifically about Cerberus' FTTPoD offering.

The answer is no, it's part of the deal. FTTPoD is an expensive product for them to offer - it requires a lot of management admin - and they need to get those costs back somehow, and make some profit. Part of the clawback is that they have captured a customer for 2 years that they probably would not otherwise have had. Another part of the clawback is that they charge a higher rental for those 2 years. You can then either drop to regular FTTP pricing, or you can walk and take FTTP from someone else.

(It used to be 1 year; then they added 2 years for the lowest 40/2 "FoD Basic"; now it's 2 years for everyone)

In reply to a post by Westyfield2:

What I would like is to pay an even larger install cost, and then native FTTP pricing from day1.

I expect you could do that: just pre-pay 2 years of the difference. (But it would make more sense to keep the money in a savings account, and drip-feed it out over the 2 years. And they might just stop collecting DDs while the account balance is positive)

In reply to a post by Westyfield2:

Or even, what about just paying a massive install cost and then having no 'service' on day1 but a line that exists and can be ordered with any regular OpenReach FTTP ISP.

No can do. The minimum service period from Openreach is 12 months (see price list). So if Cerberus place the FTTPoD order, they are committed to paying Openreach for 1 year.

Nothing stops you from negotiating with them: if you make them a high enough offer they might listen. IMO it would be a waste of money though. Why not just pay Cerberus, and enjoy 2 years of "free" service included, before switching to another provider? And in any case, you might find you like the service.

Full disclosure: I ordered FTTPoD with Cerberus in March 2018. It got activated at the end of August 2019. I have stuck with them since then, since I've found their service to be good, and their native FTTP pricing dropped substantially just as I renewed for Sep 2020, and again just as I renewed for Sep 2021.

Aside: I am on the 300/50 level, which is the sweet spot in their catalogue and perfectly fast enough for me. I'd much rather pay £48 for 300M from Cerberus than pay £48 for 1G from the likes of BT.

EDIT: It is possible to order a *second* FTTP service as soon as your first one goes live. Openreach will come back and either install a second ONT and drop cable, or swap your ONT for a four-port one. This means it's possible to take the 40/2 service, not use it, and order FTTP from some other provider of your choice. Big waste of money though.

Edited by candlerb (Thu 05-Jan-23 17:51:17)

The only benefit I can see to doing that is if you don't want to use one of the few providers that offer FTTPoD - however, FTTPoD is only provided by those providers and a minimum contract is just part of the terms of the products. If it is just about paying for it in a lump sum then why not just setup an account that has the money in it and setup a DD from that account - use it for nothing else and just forget the account exists; essentially then you have paid for it all up front.

Checking the figures: if you want a gigabit service, it could be marginally cheaper to get 40/2 from Cerberus plus gigabit from some other provider over 2 years.

* Cerberus FTTPoD 900/110 = £108.00 per month

vs.

* Cerberus FTTPoD 40/2 = £45.60 per month
* BT (or similar) 900/110 = £55.00 per month
* Total £100.60 per month

Total saving over 2 years: £177.60

Against that you have the additional hassle and delay of activating the second FTTP service, and you don't get the benefit of the static IP addressing from Cerberus (if that matters to you).

At lower speeds, e.g. 500/75, it works out more expensive to do it this way.

Are there any AltNets local to you that might be more receptive to doing a one-off build?

I wonder if approaching the Openreach new sites team would be worthwhile, someone building 4 new houses on some land they cleared a bungalow off don't go through the FTTPoD process.