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ADSL cost breakdown

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  • 12-09-2001 8:48pm
    #1
    Neville
    Closed Accounts Posts: 6 ✭


    Based on Irish times article, and other info floating around the board:

    Prices in Euro 
              eircom           BT            Cost Based

wholesale   75             48                ??

retail      99             64                ??

markup      22(22%)        16(25%)           ??(25%)

    Obviously the key is the wholesale price, and how eircom can justify €75 when BT does it for €48.

    So can we fill in the cost based wholesale price?

    From the pricing the wholesale price only has to cover the cost of the DSLAM and the cost of the bandwidth connected to it.
    Installation, line rental and User "modem" are charged seperately.
    Or am I missing something? (see investment point below)

    IIRC hudson806 specified that approx 4Mb of bandwidth would be available to each 24 user DSLAM

    So:
    1. What DSLAM are eircom using, and how much does it cost?
    2. How much does the bandwidth cost?

    Also from the article, eircom claims to be investing €125m over 5 years in ADSL rollout.

    What capital investment, other than upfront DSLAM purchases, are adding up to €25m a year?

    In their press release, eircom state they have provided detailed costings to the ODTR to justify the €75 price.
    I presume they will not publish those details, (although if they stand up, I'm not sure that there would be any commercially sensitive information involved)
    But would they provide them to the committee under NDA?
    Would the committee be interested in seeing them under NDA?

    Alternatively, could Esat publish a wholesale cost breakdown with a price below €75?
    Or are wholesale cost breakdowns available for other markets?


Comments

  • Options
    #2
    qwertyup
    Closed Accounts Posts: 200 ✭✭qwertyup


    The fact that with even 100,000 users overall, Eircom would have paid off their investment in full within just three years, reall exposes this as greedy tactics

    I had assumed that they might at least try to have a loss leader product for consumers.

    As in, get it into everyones homes, as well as offices, and use the offices to subsidise the home users a little, while not screwing anyone over too much.

    Instead they did what we have seen.


  • Options
    #3
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    It's just a total disgrace !! :mad:

    Eircom have the ability to reduce the cost and still make a good profit, especially for home users.


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