Cheaper web and calls on horizon as Ofcom considers KC bundles bid

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Friday, August 06, 2010
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This is HullandEastRiding

PEOPLE in East Yorkshire could get cheaper telephone calls and Internet use if changes to the way KC sells its services go ahead.

Telecoms regulator Ofcom is to consider allowing the Hull firm to offer single packages, combining the two services, for the first time.

Current regulations ban KC from offering these 'bundled' options due to its dominant position in the local market.

If, following a consultation, the idea is given the approval, the new proposals could cut the costs for KC customers who currently have to pay for each service separately.

KC claimed it was too early to specify how much money their customers might save.

But research published by Ofcom revealed that elsewhere in the UK, consumers taking some or all of their telecoms services from the same provider made savings of between £88 and £140 a year.

Sean Royce, KC's commercial and finance director, said: "We know from talking to our customers, both businesses and consumers, that many of them would welcome bundled phone and broadband services, but the restrictions placed on us mean we can't offer discounts and provide added value when selling two or more products as a combined package.

"We've been in talks with Ofcom about this for some time and are pleased that the regulator has agreed to consider relaxing the regulations currently in place.

"If the outcome of the consultation is that we're given the green light to offer bundled services, we'll be looking to launch these for both businesses and consumers as soon as we can."

As part of the Ofcom consultation, which is open until September 2, the regulator is inviting comments from KC customers on the proposals.

These will help determine Ofcom's final decision, due to be published in the autumn.

People wishing to comment on the proposals can do so via http://stakeholders.ofcom.org.uk/consultations/retail-bundling-in-hull/ or by writing to Katherine Dinsdale, Floor 4, Competition Group, Ofcom, Riverside House, 2A Southwark Bridge Road, London SE1 9HA

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    by Ade, Hessle

    Friday, August 06 2010, 8:21PM

    “FWIW, I think KCOM should stop wasting their time with the PR spin generating machine and concentrate on upgrading the network to deliver FTTH. All this is designed to do is tie in customers for a further 12 months which will effectively buy KCOM a further 12 months guaranteed business, thereby shutting off Hull to competition, yet again!”

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    by john, Hull

    Friday, August 06 2010, 3:34PM

    “Well i have no complaints with KC browdband,the only place you will find it faster is in a far eastern country who are light years ahead of us,and to think it was a Brit who invented the internet”

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    by Martin, Grimsby

    Friday, August 06 2010, 3:01PM

    “Fat Tony, Dinner!

    You don't just spout claptrap but selective claptrap, as you don't bother to read the posts you respond to. I haven't bothered to upgrade to 50Mb broadband, which you don't have the facility to do anyway (can you aspire to even 20MB), because fast is virtually instant (10.92Mbps currently on wifi and would be 15-16 on my Ethernet connected PCs) and that's with 20Mb and I can't drink my coffee that fast, Fat Tony. I'm still paying the same price for 20Mb that I was paying when I first started my broadband service at 1Mb all those years ago.

    Also, free telephone calls any time of the day, too many TV programmes for me to watch and top of the range internet mobile phone with facility to email and call any Virgin number free of charge, plus....... the options go on, 10Gb web storage, free photographic prints.

    Oh what can be achieved outside monopolies, so eat your heart out Fat Tony and shouldn't everyone have a choice.”

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    by Fat Tony, Dinner!

    Friday, August 06 2010, 1:41PM

    “Wow! An actual debate and not a 'handbags at dawn' job!

    Martin: If you read my post, you'll see the word 'AVERAGE' speed. Have a look at the Computer Weekly site if you don't believe me. Still not sure how a load of questions can be classed as 'claptrap' though. And for my reassurance, does this mean you're paying for a 50mbps service and only getting 9? If that is the case, KC don't do badly for headline vs. actual speeds then do they?

    Marge, great, a balanced view, quite prepared to listen to your opinion on that front.

    Cheers to UserInHull as well. Not often you get some actual answers that don't also resort to personal insults (Martin)! (Although i'm guilty of that myself on occasion. Well, some people just wind me up ;-) )”

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    by UserinHull, Hull City Centre

    Friday, August 06 2010, 12:50PM

    “For the record... Not a KC employee or even a fan. Someone who would very much like to see choices in the city and would find the best to suit my needs.”

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    by Marge, Hull

    Friday, August 06 2010, 12:48PM

    “Has anyone on here lived elsewhere, has sampled multiple services from numerous providers, in order to be able to make a judgement on how bad KC's service is?
    Yes and I had excellent service at good and fair price. My speed was always consistant (unlike KC). Best part was, if the service wasn't up to a decent standard, I could cancel and move providers.

    Does anyone think that KC have actually tried to make an effort with it's customers for a change, following years of being tossed aside and taken for granted?

    Of course not. They can charge what they like (I was told by two ofcom employees they don't do anything about regulating prices), they can give bad service, they can do what they want and we have no choice.”

  • Profile image for This is HullandEastRiding

    by Martin, Grimsby

    Friday, August 06 2010, 12:48PM

    “Fat Tony.

    What claptrap you come out with, my Virgin download speed across my busy wifi is currently 9Mbps and if I went to one of my Ethernet connected PCs it would be around 15-16Mbps and that's from a 20Mb service. I download 50Mb in the time it takes to pick up my cup and have a sip of coffee. Get real, and the people of Hull deserve choices just as I have.”

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    by Rob, Hull

    Friday, August 06 2010, 12:40PM

    “It's nice to see so many well informed KC employees coming onto the site to defend their employer.

    No other company will come into Hull because of the cost of the Local Loop Unbundling, for the amount it would cost BT there isn't sufficient demand in the city, in terms of population density, to make it worth their while. Many customers would like the option of an alternative supplier, but the only way to move forward would be to raise sufficient capital to create a new company that could offer a rival service.”

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    by robert ward, hull

    Friday, August 06 2010, 12:27PM

    “its not fair everyone should have a choice of telephone and broadband package k..c are clearly ripping us all off in the hull and surrounding area,The reason isthey are holding out as long as they because its all about money and profit ,They no if they give us the choice like everyone else up and down the country its curtains for kc”

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    by UserinHull, Hull City Centre

    Friday, August 06 2010, 12:06PM

    “Hi Tony,

    The parts that I can answer as fact I will, the others I will leave to those who know better than I..

    Agreed that an overall business plan needs to look at covering more than just 12 months, I dont dispute that point. But to begin with a company will look to carry out research into any new market (in this case Hull and surrounding) If it fails to see that there would be enough of a take up to warrant making the investment it is unlikely to do so.

    I have lived outside of the city and had the chioce of other providers, for my part the option to choose allowed me to shop for the best solution to meet my needs. This has to be the arguement here in Hull, thae fact that 1 (or ok 3) chioces in hull does not fit all.

    Its not KC's fault other providers choose not to come to the city, however I would argue that they do through their business plans make it difficult for any company entering the market to look for a sensible answer as to the ROI they would and could recieve.

    From a business point of view, KC have it nailed and are playing by the rules laid out.

    As for the role out of any new services... there are a number of options as to how this happens, for example the echanges have to been able to have LLU (Local Loop Unbundling) This is where another company can come in and effectively put some of their own equipment in. The other options is Access, this is where they utilise the current equipment at agreed rates. I know for a fact that KC's charges in comparison with BT exchange prices are in the same price range. Hence OFCOM cant push forward on this route.

    So there are options, but it ultimately has to be profitable for another operator to be able to offer services and when KC get to you sign new contracts it makes that difficult and clouded.

    Think back, it wasnt much more than 12 months ago that KC made some changes to its internet packages and if you wanted them you signed a 12 month agreement. I'm pretty sure (although not 100%) they did this the year before too. However will stand corrected if I am wrong.”

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