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Wednesday, November 15, 2006

BT Wholesale IPStream Price Cuts

Mr Saffron from ADSLGuide has done a fantastic job in modelling the effect of price cuts from BT Wholesale. The cuts vary according to the bandwidth consumption and are in the order of 18.3% to 48.4%.

This may sound significant but they are nothing compared to the general price disinflation in the voice market. Also, bear in mind the last time the IPStream pricing changed was April 2004. Back then, there were only 2.45m DSL connections and most were being provisioned at 500kbps.

However, the LLUers should not despair too much about the price cuts. IPStream is still really expensive especially for large consumers of bandwidth. Given that a decent quality film comes in at around 4GB, LLUers who want to offer Video-on-Demand services will still have a substantial cost advantage especially if they own their own backbone.