Original article ISPreview UK:Read More
The Connectivity Portfolio Manager of UK broadband ISP Zen Internet, Andrew Sayle, has published a new editorial that gives consumers a unique insight into how modern Internet Service Providers set the price you pay for your package. It also touches on how much of an impact that decision can have on the service or support quality you receive.
Regular readers of ISPreview will know of how we often make the point that price ISPs pay at wholesale for the line you’re on (e.g. from Openreach, CityFibre or others) is not the same as the price consumers pay at retail. This is because ISPs have to add all sorts of extra costs on top (e.g. 20% VAT, profit margins, network services / features / capacity etc.), which is an oversimplification.
Andrew delves into the decision making for all this and highlights how the price you pay also needs to reflect other areas, such as marketing; the bundled router and postage (if applicable); traffic peering / transit deals; the fee paid to the comparison site on every sale (if applicable); support teams (inc. staff pensions etc.); payment systems; balancing for future cost rises; the cost of adding Ofcom’s latest piece of regulatory wonder; balancing costs for customers who don’t pay their bills and a myriad of other things.