Pricing for premium speeds

We’re all happy with our sub 70Mbps service, but I answered a Cuckoo survey about future speeds upto 1Gbps. Obviously you can download huge files quickly and have multiple 4K steams at once - put would you want to be tied into paying for bandwidth you rarely use?

Cloud pricing model anyone?

  1. Perhaps pay a set monthly fee for a minimum service. PAYG for going over, only when you want/request/use the extra bandwidth (up to a financial limit per month).
  2. Whenever local capacity becomes used up, priority goes to those who’ve paid monthly eg everyone pays for 68Mbps, so everyone treated equally on that. Customers paying for guaranteed eg 250Mbps get priority up to that. Then spare capacity allocated first come first served/shared equally on top of monthly allowance.
  3. Of course, the local infrastructure up to the pipe is somewhat out of Cuckoo’s control, and can’t share demand between different geographies to even out the load over the day. But if they are considering 1000Mbps (1Gbps), that’s a shed load of 4K streaming etc. per local Exchange.

What do you think as a pricing model?

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Hey @MattJKing71 .

We’re actually going through an RFP process on the commercials as we speak (@Sarah is great at this). We’ll then conduct a benchmarking excerise to see both how we can attract customers but also make the business viable economically.

We won’t be able to charge on usage basis as we have to select each product for our customers which each have their cost base.

What do you think are fair speeds for FTTP? From 80Mb/s to 1Gb/s down.

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Thanks @Alex, I can understand you don’t have enough control over the whole infrastructure FOR PAYG of any flavour.

£30 for my 52Mbps (in practice, ie higher than the minimum promised for my area) is good value, even vs 24 month contracts, but not too cheap to be true (I could Talk and Talk about unreliable providers). Use case is: maxing out at 4K stream + YouTube on laptop (and sundry mobile background data use). Maybe once in a blue moon I might download a large game or transfer a few GB of files :man_shrugging:t3:. That’s actually only in the region of up to 35Mbps.

My point is the use case for 1GB / 500Mbps is going to be download SPEED of files you want to keep a copy of. But we’ve already got files stored in Cloud/on demand and efficiently updated (Dropbox only transfers to delta to the file). And even 8K video streaming won’t need BANDWIDTH of anything like 500Mbps for multiple films being streamed in the same customer’s home/Cuckoo account, concurrently.
I can’t see a use case based on SPEED nor BANDWIDTH for concurrent users on the same account, it needs to be more than just the same but faster.

Thanks Matt.

Use cases I see for the 1GB option are home workers who req high symmetrical speeds. Especially creatives, gamblers and gamers. A funny old mix!

I see what you did there about talking and talking about other providers :slight_smile:

There’s also just the general consumer demand point of view that we should offer everything we can above a certain threshold. Ideally we’d test somehow what you actually need and just give you that. Maybe one for the future…

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Thanks, I see your point: gamers (Cloud Gaming), gamblers (quick response times), creatives (maybe 3D VR designing and generally never waiting for a Web page to build, cloud based Office software inc. high res 2D and 3D graphics).
So, mostly a case of response times, but the following mentions bandwidth for high quality CCTV etc. adding to your concurrent needs.

So, seems to be driven by remote services, rather than downloading big files/applications to store locally. Paradigm shift - that was the phrase I was looking for :grin:

I see that Openreach published a wholesale price list on 1st July with 8 tiers from 40Mbps to 1000Mbps. That seems excessively complex for a provider like Cuckoo. Possibly 4 tiers; 80Mbps (for those happy with current circa 60-70Mbps), 220 for moderate home use, 500 for heavier home use, and 1000 for home workers and the bragging rights crowd. Current tariff is approx double the Openreach price for 80Mbps, so doubling and rounding for other speeds would suggest 220= £35/month, 500 = £40/month and 1000 = £45/month, plus of course the initial setup cost. This doesn’t take account of any infrastructure costs Cuckoo might be liable for, nor pricing from other FTTP providers, e.g CityFibre, HyperOptic, etc.

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