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-   Other ISPs Discussion (https://www.cableforum.uk/board/forumdisplay.php?f=63)
-   -   ukonline launch £9.99 broadband no cap (https://www.cableforum.uk/board/showthread.php?t=27128)

Chrysalis 12-04-2005 14:24
ukonline launch £9.99 broadband no cap
 
ukonline have launched 512kbit broadband for £9.99 which has no cap, this is a indication of how much bandwidth really does cost when BT is removed from the equation.

News source http://www.adslguide.org/newsarchive.asp?item=2194

Chris W 12-04-2005 14:31
Re: ukonline launch £9.99 broadband no cap
 
sounds like a good deal....

only part that puts me off is:

Quote:
Originally Posted by User Policy
You acknowledge and agree that we run port-blocking on all of our Broadband Services in order to maintain quality of service for all of our customers, so you will not be able to run a mail or web server. We currently block ports 25, 80, 8080 and 3128.

ian@huth 12-04-2005 14:34
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by Chrysalis
ukonline have launched 512kbit broadband for £9.99 which has no cap, this is a indication of how much bandwidth really does cost when BT is removed from the equation.

News source http://www.adslguide.org/newsarchive.asp?item=2194
I can remember just a few years ago that supermarkets were selling loaves of bread at under 10p each. That didn't mean that it was an indication of how much it actually costs to bake, wrap, deliver and sell a loaf of bread and make a profit on it.

Have you stopped to think that this may be a massive loss leader to tempt customers onto their service and then rely on inertia to keep them there when they increase the prices and introduce usage guidelines in the not too distant future.

No ISP can sustain such a price particularly when giving cut price (£25) setup and a free ADSL modem.

jtwn 12-04-2005 14:40
Re: ukonline launch £9.99 broadband no cap
 
Thats a fair point, but look at various other countries, where those prices are the norm?

scrotnig 12-04-2005 14:51
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by jtwn
Thats a fair point, but look at various other countries, where those prices are the norm?
No point comparing this country with others, the technologies and market conditions are totally different.

ian@huth 12-04-2005 14:53
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by jtwn
Thats a fair point, but look at various other countries, where those prices are the norm?
But we don't live in other countries, we live here.

I can just imagine members posting on forums in other parts of the world who are saying that their broadband prices are an absolute rip off and quoting the fact that it only costs £9.99 in the UK.

Hans Gruber 12-04-2005 15:51
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by ian@huth
I can remember just a few years ago that supermarkets were selling loaves of bread at under 10p each. That didn't mean that it was an indication of how much it actually costs to bake, wrap, deliver and sell a loaf of bread and make a profit on it.

Have you stopped to think that this may be a massive loss leader to tempt customers onto their service and then rely on inertia to keep them there when they increase the prices and introduce usage guidelines in the not too distant future.

No ISP can sustain such a price particularly when giving cut price (£25) setup and a free ADSL modem.
Some people won't be happy till we're all capped at 5gb a month and paying £100 for it. Then we'll all be able to sleep easy that the ISPs are pulling in a fair profit.

ian@huth 12-04-2005 16:10
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by Hans Gruber
Some people won't be happy till we're all capped at 5gb a month and paying £100 for it. Then we'll all be able to sleep easy that the ISPs are pulling in a fair profit.
Being realistic isn't being negative. :) :angel:

Chrysalis 12-04-2005 17:07
Re: ukonline launch £9.99 broadband no cap
 
Because their isnt BT in the middle inflating bandwidth costs £9.99 is profitable as the average user will use low amounts. Easynet have been in the game long enough to know whats profitable and what isnt.

ian@huth 12-04-2005 17:16
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by Chrysalis
Because their isnt BT in the middle inflating bandwidth costs £9.99 is profitable as the average user will use low amounts. Easynet have been in the game long enough to know whats profitable and what isnt.
Which planet do you live on Chrysalis?
Quote:
Originally Posted by Easynet Group Accounts
Operating loss for the Group declined to £13.9 million (2003 loss of £15.1 million)

Chrysalis 12-04-2005 17:20
Re: ukonline launch £9.99 broadband no cap
 
forgot to mention this

Strong cash balance of £40.3 million (H1 2004 £40.1 million).

- On track to turn cash flow positive during the second quarter of 2005
and to turn EBIT positive by the end of the year.


their long term plan is good and they have money in the bank.

Kliro 12-04-2005 17:25
Re: ukonline launch £9.99 broadband no cap
 
Where is this service actually available?

ian@huth 12-04-2005 17:34
Re: ukonline launch £9.99 broadband no cap
 
Quote:
Originally Posted by Chrysalis
forgot to mention this

Strong cash balance of £40.3 million (H1 2004 £40.1 million).

- On track to turn cash flow positive during the second quarter of 2005
and to turn EBIT positive by the end of the year.


their long term plan is good and they have money in the bank.
Those are only facts that were in their Balance sheet and do not reflect the new pricing they have just announced. Very hard to change an operating loss of that extent into an operating profit in that timescale with price reductions of that magnitude.

Chrysalis 13-04-2005 12:56
Re: ukonline launch £9.99 broadband no cap
 
its not a price reduction its a new product, they still charge 19.99 on ipstream exchanges where BT is involved so it shows its not a loss leader, its just a reflection of not having to pay for inflated costs on bandwidth.

gazzer 25-04-2005 14:47
Re: ukonline launch £9.99 broadband no cap
 
UK Online has smashed through the Internet speed barrier with the introduction of our unique 8Mb broadband service. You registered your details on our website recently and weâ₠¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚¢re delighted to let you know UK Online Broadband 8000 is now available in your area* and you can sign up today.

With 8Mb the possibilities are endless - download music and videos, watch streaming media in real time and get the killer edge for online gaming.

Expand your digital life for only £29.99 a month

Join UK Online Broadband 8000 today and you will benefit from the fastest home Internet connection available in the UK and a massive 500GB monthly download allowance, all supported by outstanding UK based customer support desk, open 24 hours a day.

Free Wireless Ethernet Router when you join before 3rd May 2005

Sign-up now at www.ukonline.net/broadband8
(i'd say this looks impressive)


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