Quote:
Originally Posted by trevrpb
Perhaps this is not thread for this but......
Im a bit confused by this talk that BT Vision will be 'out of pocket' because Sky are increasing their prices to Sky Subscribers.
Surely BT Vision's deal was completed at a specific price on expected take up and they have priced it accordingly to it's own economies of scale to its customers, and the SKY Subs price increase will have no effect whatsoever on BT's prices.
I would be gobsmacked if the carriage deal was done where a Sky sub rise had to be absorbed by BT.
TrevP
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From what I understand, the wholesale price to BT was set by Ofcom - but linked to the Sky price. BT set their prices based on the Ofcom price, Sky then put the prices up by £3 to their own customers - which meant the wholsale price to BT went up by a similar ammount. Apparently this doesn't affect VM as they have a seperate deal with Sky (which I don't fully understand).