spreadsheet seems over complex.

BTw price for 80/20 £19?
Infinity retail £26?

£7 margin too small?

In reply to a post by yarwell:

still leaves Talk Talk looking like they have a bigger margin but can't make the sales though ?

I think their point would be that it's not economically viable for them to match BT's retail pricing even with their lower costs via GEA.

In reply to a post by Chrysalis:

spreadsheet seems over complex.

BTw price for 80/20 £19?
Infinity retail £26?

£7 margin too small?

Backhaul? IP transit? Cost of own network? Customer support? Billing?

Margin squeeze is based around what a reasonably efficient operator could match.

thats why I asked the question.

What we not privy to is cost BT pay for support staff, contracts with offshore call centres etc.
Their user base usage patterns so how many are light users?
Billing if its paper based and not direct debit both have costs over the base price. So we can assume for £26 its direct debit and no paper billing.

If £7 is too small is talktalk and sky margin also too small?

If ofcom take action the result wont be good for consumers I feel.

In reply to a post by Ignitionnet:

In reply to a post by yarwell:

still leaves Talk Talk looking like they have a bigger margin but can't make the sales though ?

I think their point would be that it's not economically viable for them to match BT's retail pricing even with their lower costs via GEA.

Didnt you comment to me before thats it not about talk talk been able to match infinity pricing? (and it certianly shouldnt be) but more about if BT are failing a margin squeeze test.

440million profit for BT retail in Q4 2012. Seems profitable to me so margins are there.

http://www.btplc.com/news/articles/showarticle.cfm?A...

Edited by Chrysalis (Sat 11-May-13 01:14:17)