Vodafone hiking up their broadband price where are the alternatives

quinnd6

I got an email saying Vodafone are putting up their broadband price by 5 euro a month. That is not acceptable. Broadband here was already too expensive. I want to drop Vodafone. Where are the cheaper alternatives?

Xterminator

go to https://switcher.ie/ and put in your address. broadband alternatives depend on location.

good luck.

mass_debater

quinnd6 wrote: »

I got an email saying Vodafone are putting up their broadband price by 5 euro a month. That is not acceptable. Broadband here was already too expensive. I want to drop Vodafone. Where are the cheaper alternatives?

Everyone else is putting the price up too as it's a price increase by Eir wholesale, affects all resellers

Daniogroove

I spoke to Vodafone earlier about this, needless to say I was livid on the phone! I signed up to a 2 year contract at €35 a month.. during that 2 years it went up to €38 - I can live with that.
Now I'm 1 year out of contract paying €38 the entire time. On their website I can sign up as a new customer for the same package for €40 a month??? The answer I was given was that if I extended my contract by 18 months (offered 12 after arguing) that I would still pay the €38 I'm paying now. This makes no ***king sense! It seems to me it's more about getting me a new contract than anything else. Futhermore I was told if I didn't extend or cancel my service would stay as it is but I'd pay €45.
This is practically extortion.
I'm going to contact Comreg and see what they say.

TheDriver

They'll tell you that you don't have to pay it if you dont want vodafones service. As much as we dont like it, they aren't doing anything wrong

kevinbad2010

TheDriver wrote: »

They'll tell you that you don't have to pay it if you dont want vodafones service. As much as we dont like it, they aren't doing anything wrong

They are charging pretty crazy prices considering how much it actually costs to get the internet to our houses

for example in Romania you can get 1gbps sub for 15 euros

ED E

kevinbad2010 wrote: »

They are charging pretty crazy prices considering how much it actually costs to get the internet to our houses

for example in Romania you can get 1gbps sub for 15 euros

Yeah and a Romanian linesman gets paid €2/hr while KNNs get €20 nevermind OpenEirs own. Apples and Oranges.

9726_9726

kevinbad2010 wrote: »

They are charging pretty crazy prices considering how much it actually costs to get the internet to our houses

FYI, operators using Openeir to provide VDSL to residential customers in Ireland would be lucky to be clearing a few euro per month per subscriber.

VDSL port charge per sub per month =
€23.00
Traffic charge based on 512kbps aggregate per sub: Around €5.50/month
IP transit/peering: €0.25/month
Modem & connection fee amortised over 18 months: €3.20/m

Total direct costs ex VAT: €31.95
Inc VAT = €39.30

So at €40, they are clearing €0.70 Inc VAT or €0.57 for themselves GROSS margin after paying Revenue.

At €45, they are making €5.70 Inc VAT or €4.63 for themselves.

So on average, a couple of euro per sub. Not exactly milking it, are they? So they couldn't really give you a 1Gb service for €12.20 ex VAT (€15 to you).....

Nollog

Surely they claim the 13.5% vat back though.

9726_9726

/\/ollog wrote: »

Surely they claim the 13.5% vat back though.

VAT on broadband is 23% which is VAT on sales. So if a provider charges you say €40, they only get €32.52 of that, from which to pay Openeir and all of their overheads. For VATable purchases, such as goods, supplies, non-wage expenses, they can claim VAT back on the purchases. The Openeir prices down have *already* had the VAT taken off.

So operators are working on a couple of euro per sub per month in reality.

Also, VAT on sales is not claimed back, it is taken from the end customer by the operator, then paid up to Revenue every two months.

Nollog

I thought it was a service they get from a business to resell.

9726_9726

/\/ollog wrote: »

I thought it was a service they get from a business to resell.

No, telecommunications services are 23%. The providers are purchasing layer 2 connectivity as a managed access solution and providing their own internet access over it. So they are not reselling as such. They are outsourcing part of the path.

Check your bill. VAT is 23%.

Which raises something interesting.... The state is taking €150m+ per annum out of the pockets of broadband subscribers.

Say 1.6 million subscribers at €8 each VAT per month = more than €150m per annum the state is taking from broadband subscribers! Puts the NBP spend in perspective!

No wonder they want to increase uptake!

(Being slightly facetious).....

Nollog

I know I get charged 23%. I thought they didn't get charged that much.

Daniogroove

9726_9726 wrote: »

FYI, operators using Openeir to provide VDSL to residential customers in Ireland would be lucky to be clearing a few euro per month per subscriber.

VDSL port charge per sub per month =
€23.00
Traffic charge based on 512kbps aggregate per sub: Around €5.50/month
IP transit/peering: €0.25/month
Modem & connection fee amortised over 18 months: €3.20/m

Total direct costs ex VAT: €31.95
Inc VAT = €39.30

So at €40, they are clearing €0.70 Inc VAT or €0.57 for themselves GROSS margin after paying Revenue.

At €45, they are making €5.70 Inc VAT or €4.63 for themselves.

So on average, a couple of euro per sub. Not exactly milking it, are they? So they couldn't really give you a 1Gb service for €12.20 ex VAT (€15 to you).....

You have a source for these numbers? You're deluded if you think vodafone are making .57c per month per customer. That wouldn't even cover admin/customer care/maintenance.

mass_debater

Daniogroove wrote: »

You have a source for these numbers? You're deluded if you think vodafone are making .57c per month per customer. That wouldn't even cover admin/customer care/maintenance.

It was well known that for many years Vodafone lost a fiver a month on every fixed subscriber. They subsidised it using their highly profitable mobile offerings and added a flyer to every bill hoping to tempt the customer move their mobile phone to them.

We have a very competitive mobile market. Three have operated here for years without making a profit (I'm not sure if they do yet), it's subsidised from Hong Kong

Daniogroove

mass_debater wrote: »

It was well known that for many years Vodafone lost a fiver a month on every fixed subscriber. They subsidised it using their highly profitable mobile offerings and added a flyer to every bill hoping to tempt the customer move their mobile phone to them.

We have a very competitive mobile market. Three have operated here for years without making a profit (I'm not sure if they do yet), it's subsidised from Hong Kong

So three operated here for years without making a profit and then decided to buy O2 Ireland for €850 million 😂😂😂😂

mass_debater

Daniogroove wrote: »

So three operated here for years without making a profit and then decided to buy O2 Ireland for €850 million 😂😂😂😂

Yes, they are owned by the huge worldwide conglomerate CK Hutchison Holdings who are not looking for an instant return on investment

Daniogroove

mass_debater wrote: »

Yes, they are owned by the huge worldwide conglomerate CK Hutchison Holdings who are not looking for an instant return on investment

Now you're just making it up as you go along. They have shareholders looking for dividends, shareholders aren't patient.

ItHurtsWhenIP

Daniogroove wrote: »

Now you're just making it up as you go along. They have shareholders looking for dividends, shareholders aren't patient.

mass_debater wrote: »

Yes, they are owned by the huge worldwide conglomerate CK Hutchison Holdings who are not looking for an instant return on investment

Daniogroove wrote: »

So three operated here for years without making a profit and then decided to buy O2 Ireland for €850 million 😂😂😂😂

You may have missed the huge worldwide conglomerate bit. Three Ireland are a mickey mouse, minor, sub-office operation to the larger behemoth.

Also, don't forget Three had their network in Ireland effectively paid for by the NBS.

mass_debater

Daniogroove wrote: »

Now you're just making it up as you go along. They have shareholders looking for dividends, shareholders aren't patient.

Like I said they have owners with very deep pockets. A quick Google and the first two links say they recorded big losses in 2012, 2013 and 2014 even while trying to buy O2.
http://www.irishexaminer.com/business/three-ireland-cuts-losses-by-over-30-as-revenues-rise-226609.html
http://m.independent.ie/business/irish/3-ireland-loses-29m-while-profits-at-bt-drop-by-36pc-30051720.html

Not recording a profit isn't necessarily a bad thing if you're increasing your customer base, increasing turnover and expanding your network

ED E

Daniogroove wrote: »

Now you're just making it up as you go along. They have shareholders looking for dividends, shareholders aren't patient.

Just stop, you're making yourself look the bigger fool with each post.

9726_9726

Daniogroove wrote: »

You have a source for these numbers? You're deluded if you think vodafone are making .57c per month per customer. That wouldn't even cover admin/customer care/maintenance.

Source? Yessir.

It's all in here my friend regarding the Openeir charges, which are regulated and applied uniformly:

http://www.openeir.ie/WorkArea/DownloadAsset.aspx?id=3947

You must remember that operators are looking to maximise their ARPU (Average Revenue Per User). Note Average.

So they will freely lose money on (say) Simply Broadband pricing but hope to make it up on bundles.... mobile, TV, etc.

That's why they added that stuff, because ARPUs were under pressure industry-wide.

Ed? Anything to add?

ED E

Nothing other than TV is where the money will come from.

Margins on Retail BB are *terrible* the world around except for where there's an unregulated monopoly (Comcast/TW/AT&T). Now that every provider has the capability to sell TV not just Sky/Virgin thats what they'll all push. Eir/BT were very coy snapping up the sports licence early on.

waffleman

Mine has gone up 8 euro in the last year

they added on 5 euro last year and recently removed the 3 euro discount for having your mobile with vodafone

it seems this has been the plan for a while to shaft people who rely on ADSL

Vodafone took over utv internet (their only real competition for fixed line broadband + telephone packages in my area) then started jackin up prices.

so now my only option is bluebox (contention ratios are daft - unusable at peak times) or 3g / 4g with some kind of mobile contract with free calls which will still end up more expensive even with their hiked ADSL prices.

It's a joke.