Half price unlimited broadband: £2.50/month for a whole year

Does anyone know how EE are able to provide this incredible deal?

The line rental is £14 per month so the phone line and the unlimited broadband is a total of £16.50 per month which works out to be £198 per year.

My BT bill for line rental and unlimited broadband is £528 per year and I've recently been informed by BT that my monthly cost is going up soon!

HAHA what a joke BT are playing on me?

Does anyone know the actual details of how it is possible for EE to be able to give everyone such an incredible deal?

It's a "Come on!" for new signings. A loss leader. They make their money from the calls package and the expectation that most will stay on after the min. term.

This would explain some of the rip off pricing on 4G, loss leading land line services to cover!

Surely it's not going to be that much of a loss though?

My unlimited broadband from BT (excluding the line rental) is £29.40 which is just stupid when compared to the £2.50 for the same package from EE.

I'm WBC unlimited with BT and if I switch to EE it's also WBC unlimited. I don't know about peering/routing but it's unlikely to be much different?

BT WBC unlimited appears to be insanely expensive yet EE is crazy cheap. So now I am wondering what is a reasonable cost for WBC unlimited. For example, if I was selling you a computer part I might charge cost price + 15% which is a reasonable thing to do, so what is the reasonable cost of WBC unlimited?

Can we find out?

£30 a month is insanely expensive? what are you living on paperound money?

and yes £2.50 a month is a significant loss leader. The wholesale costs will be way above that.

XRay is proven correct again!

Here we go explaining myself hopefully adequately.

I don't mean it's insanely expensive to my wallet. I don't mind paying whatever it costs for my broadband.

What I mean is it's insanely expensive COMPARED to EE for the same Unlimited WBC package! Exact same broadband but MASSIVE difference in price relatively speaking!

BT is playing a joke on all us users who are paying almost £30 for something that appears to be much more expensive than it should be!

I only know about this because I have a 15 dB noise margin which led me to TBB and I am a T-Mobile mobile customer so EE sent me a letter explaining the £2.50 offer!!!

Please don't see it as me being cheap, I can afford whatever it costs for broadband but I know there are many who aren't so fortunate.

I have no problem paying BT however what I don't appreciate is a company who has decided to RIP OFF IT'S CUSTOMERS by overcharging instead of telling their customers the price of broadband has significantly reduced!

BT are quick to tell us when the price has increased but they stay silent when the price has reduced!!! Maybe it's legal but morally it's despicable and we MUST stand up and be counted when we learn of such a despicable act!

It's even more of a joke as soon BT are actually increasing my Unlimited WBC and anytime calls package from £29.40 to £31.x (don't remember the exact number I was told) and yet they offered me a deal to stay with them for 12 months at £13.75 for the same package because I intended to move to another supplier. As far as I am concerned it's like they will be STEALING £31.x from my bank account soon!

Sorry I am doing the CAPS because it really does anger me when I think about how BT are ripping off their customers! I CAN afford it! I am not ANGRY for myself I am ANGRY because I know there are many other customers out there who aren't so fortunate as myself and they WON'T HAVE A CLUE ABOUT ANY OF THIS. They allow BT to take their money without knowing how much they are being ripped off! I know this is fact because they have been doing it to me! I am NOT making any of this up!

One of the BT cancellation guys tried to convince me to stay by saying BT have a 55% market share and it's increasing every month so stay with the best!

How many of those millions of customers are BT ripping off by overcharging???

In reply to a post by akawtu:

BT are quick to tell us when the price has increased but they stay silent when the price has reduced!!!

This is not unique to BT; most ISPs do not auto reduce prices to existing customers. Nor is it unique to telecoms industry; energy, insurance, banking do it as well.

The onus is on the consumer to keep an eye on prices, shop around and take their custom elsewhere when necessary.

as said in your duplicated thread, its not exact same broadband, corners have likely been cut to reach that pricepoint. Plus its a loss leader.

I have no doubt that the majority of customers are like me and we don't know how it all works internally and neither do we have to because as far as we are concerned we trust the company supplying us to provide a reasonable service.

I asked EE if the Unlimited WBC broadband will be the same as my current BT Unlimited WBC broadband and I was told it will be. I even asked BT cancellations about it and they agreed it would be the same. The BT cancellations person I spoke to the first time even appeared to be remorseful that BT are charging me £29.40 when EE are offering the same Unlimited WBC broadband for only £2.50. It's like she knew I was being ripped of by BT and felt sorry for me but hey it seems like that is how the company is run and long may it continue could be the internal company motto???

Why should it matter to me that allegedly corners have been cut to reach a pricepoint or that it is allegedly a loss leader? It sounds like FUD to me!

In reply to a post by XRaySpeX:

In reply to a post by akawtu:

BT are quick to tell us when the price has increased but they stay silent when the price has reduced!!!

This is not unique to BT; most ISPs do not auto reduce prices to existing customers. Nor is it unique to telecoms industry; energy, insurance, banking do it as well.

I HAVE NO DOUBT THAT SUCH DESPICABLE MORAL IGNORANCE WILL NOT BE ALLOWED TO CONTINUE FOR MUCH LONGER!

It's the commercial world. Don't forget that BT are investing huge sums in FTTC, both as a commercial roll-out and match funding BDUK monies - ultimately all investment funds come from customers - even BT don't own a money printing press or a forest of the fabled money trees.

Orange UK on the other hand are a mobile telecomms operator, and by offering mobile and landline/fixed broadband bundles (triple play) they reduce churn, which has been the scourge of the mobile industry - they too need a steady income stream to invest in their (slower) roll out of 4G (have you perchance noticed as a customer how their mobile prices have increased over the last ten years, and still are) - but it's small beer compared to the investment of BT.

The idea that there is a "just" price is frankly, a medieval concept, at least 500 years out of date. Unless, of course, you expect the world to move backwards . . . but you might be waiting some time.

Edited by deleted (Mon 07-Jan-13 09:32:31)

In reply to a post by akawtu:

Surely it's not going to be that much of a loss though?

My unlimited broadband from BT (excluding the line rental) is £29.40 which is just stupid when compared to the £2.50 for the same package from EE.

I'm WBC unlimited with BT and if I switch to EE it's also WBC unlimited. I don't know about peering/routing but it's unlikely to be much different?

BT WBC unlimited appears to be insanely expensive yet EE is crazy cheap. So now I am wondering what is a reasonable cost for WBC unlimited. For example, if I was selling you a computer part I might charge cost price + 15% which is a reasonable thing to do, so what is the reasonable cost of WBC unlimited?

Can we find out?

Are you sure EE are using WBC?

ELIGIBILITY

Fibre Broadband & Broadband prices include £5 discount for new and existing EE, Orange or T-Mobile customers (excluding pay as you go mobile broadband) living in an EE standard broadband network area. Non-eligible customers pay up to £15 a month more.

If they are then yes it's loss leading, no question, it costs them £5.88 / month + VAT just for the ADSL connection between you and the exchange.

The bandwidth to get you onto the internet is, at approximately average use, upwards of another £5 per month.

They are cross-subsidising with their mobile business, using broadband to improve loyalty on the mobile customer base and to try and drum up new business through upsell.

As far as BT go they charge the same rate wherever a customer is in the country despite the different costs, meaning that those in areas where pricing is deregulated are subsidising those in market 1 regulated areas, and they are making some profit on the whole deal anyway, hence how they can upgrade people on their unlimited ADSL2+ package to unlimited 80Mb/20Mb FTTC free of charge.

In reply to a post by akawtu:

The BT cancellations person I spoke to the first time even appeared to be remorseful that BT are charging me £29.40 when EE are offering the same Unlimited WBC broadband for only £2.50.

The EE price is dependent on you having an EE mobile phone, so not directly comparable.

I am sure EE are using WBC.

Met one journo who did believe they had built their own fibre network to 11 million homes though

Once people stop using mobiles to vote on reality shows the cross subsidies might hurt, but so long as millions spend 50p or £1 a week plus SMS fee the operators will continue to subsidise.

In reply to a post by Ignitionnet:

Are you sure EE are using WBC?

Yes, at exchanges that are 21CN enabled, such as mine.

In reply to a post by akawtu:

I HAVE NO DOUBT THAT SUCH DESPICABLE MORAL IGNORANCE WILL NOT BE ALLOWED TO CONTINUE FOR MUCH LONGER!

Who's going to stop it? You & Martin Lewis?

if you believe it to be FUD then move.

if you think the infrastructure to provide you that service only costs £2.50, the billions spent in deployment etc. then fine. Why ask the question on here if you dont like the answer.

In reply to a post by MrSaffron:

I am sure EE are using WBC.

Met one journo who did believe they had built their own fibre network to 11 million homes though

Once people stop using mobiles to vote on reality shows the cross subsidies might hurt, but so long as millions spend 50p or £1 a week plus SMS fee the operators will continue to subsidise.

Thanks, I was pretty sure I remembered them selling the Orange LLU goodness.