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Freeola want £69 or so for activation, while BT are doing it for free. I have a modem already, so why should I spend the money with Freeola?
Or maybe Freeola are just a bit slow in changing their pricing?
> If Freeola would just drop their activation charge, I'd probably join
> up.
But BT need money for the activation charge (£50 I think), so thats why ISPs charge activation fees otherwise they lose out on money.
> I am with Pipex and already pay a low monthly fee of £23.44 so I don't
> mind if the prices stay the same.
Don't mind, yes :)
But I wouldn't say no to a price cut :)
> And will Freeola be dropping their prices in response to the recent
> drop in BT Wholesale prices?
Maybe, but BT are a bit misleading as they annouce these price cuts but there increasing other costs to do with ADSL. Go to www.adslguide.org.uk and look at the news archive and see a few articles about it.
Basically what BT have done is cut the line rental down, so on May 1st the new price for a 512K line will be £13.00 instead of £14.75. So that means that your ISP is paying £1.75 less a month for your line, so you could in theory say that a £1.75 a month reduction in price for your ADSL connection is fair. But this is where BT are misleading people, as they have increased costs for ISPs. The following was taken from a news articale from www.adslguide.org.uk
"Along with the news already released earlier of price cuts at the wholesale level for the end user connections, BT have also advised their customers that there will be a price RISE on the 155Mbps BT central product. This relates to a rise of £10,000 in the connection fee, and a £5000 rise in the Annual Rental. This rise will be designed to soften the blow of the cuts on the end user products. To quote BT,
On a per end user basis the increase in the BT Central 155Mbit/s price equates to approximately a 10p – 12p increase per month. However, when combined with the base BT IPStream price reductions, there is still clearly a significant net reduction in the end to end price per end user."
So you can actually see that these increases for pipes will mean that ISPs may see a saving of only a few pence, depending on how many users they have and how many pipes. I think quite alot of ISPs will actually keep the prices the same or only reduce them by a small margine. Iam with Pipex and already pay a low monthly fee of £23.44 so I don't mind if the prices stay the same.