So, £5 a month covers the broadband rental, the network infrastructure (including switches, firewalls, etc), the services (DNS, email - if available, etc), support and onward connectivity.
I can't remember how much an LLU rental was but I'm pretty sure just the line was higher than this not so long ago. I cannot believe at £5 a month there is any profit and I believe it would be subsidised by other areas of the business.
SCRATCH THAT - Apparently they are now selling one for £3.50 per month with first 6 months at £1.75. Clearly there must be a profit at that price?
EDIT: If
this Openreach link is correct that full MPF rental is £83.92 per annum plus VAT. That is £8.39 inc VAT per line. Am I looking at the right page? If so, then surely any broadband service has to be more than that per line just to get anywhere near covering costs?
EDIT 2 : OK - I may have misunderstood the costs? Full MPF is much more than Shared MPF so does full MPF at £8.39 per month also include the voice line rental from Openreach? If so, then charging £15ish for voice plus £3.50 for broadband would give some leeway for other costs/profits. Anyone know if this is how it works?
Edited by ian72 (Mon 12-May-14 14:55:13)