RE: The Magic Bid23 Jul 2025 13:19
Something that never gets mentioned now is Equinox 2. This agreement between Openreach, OFCOM and ISPs is due to expire at the end of March 2026. This agreement encourages ISPs to move customers, new or existing if using a legacy product, onto BTs FTTP network. If the ISPs generate enough connections each quarter they can receive a discount on there payments to Openreach. With all the talk about BT losing direct BB customers to other ISPs and in some cases to Altnets, who may also have coverage in a BT location with a contract with an ISP that also uses BT, is something that at the end of the day BT has encouraged through Openreach’s Equinox2. The calculations would have been made to ensure that the losses going forward would be known for those ISPs, the only unknown would be the level of take up to Altnets. Openreach have had a couple of years to understand the impact of the Altnets and have a reasonable idea as to the figures going forward.
So it will soon be time to either extend the expire date of Equinox 2 or replace it with version 3, Depending on how the losses stack up it will soon be time to notify those involved. Some will get into its Openreach’s contract not BTs, it’s retail, its wholesale, customers, end users etc, that’s just stupid, but likely. At the end of the day the profit ends up with BT, much the same as Plusnet profit. Therefor I look forward to the next move with Equinox, it could very well be the end for some Altnets, encourage ISPs to use BT rather than other others, thereby increasing income for BT plc just as capex, staff, leases, energy costs start to reduce dramatically over the next 2-3 years. It’s all part of the big plan and playing the long game, probably what BTs biggest shareholders have seen without any intention to make a bid, just sit back and watch the SP increase without having to sell the company silverware, ie Openreach.