BT Wholesale has a number of advantages over its competitors. I chose TalkTalk Wholesale for my AAISP line, thinking it would be more reliable. Nope, no chance! It's had variable pings - when my line resyncs it chooses either a ~13ms or ~19ms ping path. It's had relatively speaking significant downtime. And peak time congestion issues, which they took ages to fix.
The reason for TalkTalk's issues is mostly because they have a cobbled-together network from a circular core dark-fibre route, connected to exchanges by leased 1/10Gbit/s lines. Essentially, they don't really own any of the network themselves and don't have the means of optimising it.
By comparison, BT's network has been around much longer and has been carefully designed. It's also owned and operated almost entirely by them, so they have full control and can optimise it. When I was on BT, I never saw peak congestion, excessive downtime or varying pings (max ever was 11ms).
When we add on the fact that BT Wholesale covers
every single exchange in the UK (except KCOM of course), it's got some strong advantages. So while £48 per Mbit/s per month is in no way a true reflection of their costs, taking your costs and adding a given margin on top isn't the only pricing method. When you have significant advantages over your nearest competitors, you can afford to keep artificially high (demand led) pricing.
AAISP's 1/2/10TB tariffs have only been made possible due to special arrangements and rates with TalkTalk, which I imagine would be charging them significantly less than £48 per Mbit/s per month.
Their recent discussions of usage implied that the price of the 1TB tariff didn't really cover the cost of 1TB of usage + Openreach WLR/GEA rental, so my calculations suggest perhaps TT is charging in the region of £20 per Mbit/s per month.
Edited by deleted (Sat 09-Sep-17 07:58:23)