Variations to BT PPC Install Charges

BT PPC Install Costs

• Star became Wholesale BT PPC customer in Nov 06• No 4x2Mbit/s Access charges till May 07• Now 15% of orders with installs at £5,988 due to

incurring 4x2Mbit/s Access charge• No explanation given for additional 4x2Mbit/s

Access Charge• Typical set up charge passed on to end user is

£3,000 (based on majority of Orders have installs at £2,916)

• Frequency of 4x2Mbit/s charges too high for Star to absorb and having to pass on

Stars Experience

BT PPC Install Costs Average Install (Mar – Oct 07)

Average PPC Install Cost Breakdown

0%

10%

20%

30%

40%

50%

60%

70%

80%

<£3,000 <£3,500 <£4,000 £5,988 (4x2Access)

£8,002 (New fibre) >£8,500

Install Cost

% o

f O

rders

Average

BT PPC Install Costs

• Customers cancelling when faced with £6,000 install and suspicious of additional charge– Some claim they already have 4x2Mbit/s Access– Rumours circulating that BT Retail own existing 4x2Mbit/s Access

and cannot be used by other parties

• Star Account Managers dissatisfied with selling PPCs due to cancelled orders

• Cancelled orders also impact Star achieving PPC Forecast• Star needs assistance from BT

– To understand the reasoning for the 4x2Mbit/s access charge in order to position with customers

– Assurance the charge is being applied fairly– To identify the 4x2Mbit/s access charge at the quote stage (i.e.

from Post Code)

Stars Experience