On Demand commercial model
Two commercial models are available via On Demand:
On Demand / flex – for customers who are ready to embrace a next generation commercial model based on flex consumption, per hour billing and short term or long term circuit commitments
Traditional / fixed– for customers who want to enjoy the benefit of SDN automation via a traditional commercial model based on fixed contract lengths and fixed monthly charges
|Happy to embrace per hour billing||Want fixed monthly billing|
|Sometimes need bandwidth for short periods (<6 months), as well as traditional fixed term contracts||Require standard fixed term contracts (12-36 months)|
|Typically don't like install charges||Are happy to pay install charges (NRCs)|
|Sometimes want to flex bandwidth on a consumption model||Like SDN automation, but don't want to regularly flex bandwidth up and down|
On Demand flex model
Under the On Demand / flex model, charges are split between ports and circuit connections (Ethernet / Cloud / IP Access).
The On Demand model is mainly based on rental charges, the only exceptions being ports in enterprise locations and cross connect & cabling charges which attract a one-off installation charge.
A data centre connection is shown below for illustration. Note that IP Access and hosted cloud connections do not attract any B end charges or port commitment.
Ports are based on fixed bandwidths of 1Gbps, 10Gbps and 100Gbps and are available on a 3 or 12 month contract. Circuit connections are available at speeds between 10bps and 20Gbps and are available on a 1 hour flexible contract or 3, 6, 12, 24 and 36 month fixed term contracts.
Note that port bandwidths are static and cannot be upgraded. Circuit bandwidths are dynamic and can be flexed or permanently upgraded.
1 hour flex contracts allow customers to benefit from a fully flexible Bandwidth On Demand (BOD) service, with the ability to change the bandwidth of the circuit up to the full port speed on a per hour basis. Customers can convert a 1 hour flex contract to a 3-36 month fixed term commitment at any time.
For 1 hour flex, customers are invoiced for their total cumulative bandwidth usage at the end of each month – for example, 17 days at 1Gbps and 14 days at 100Mbps.
Below is an example of the pricing journey for a metro circuit in Germany. Note that the pricing is is correct at the time of writing but may be subject to change.
Connections based on a 3-36 month fixed term contract can be permanently upgraded up to the port speed at any time. Note that ports in enterprise buildings require a minimum commitment of 12 months. Hosted (virtual) cloud ports are provided free of charge.
Once a fixed term contract expires (for example, a port or circuit connection on a 12 month contract) the rental charge remains the same. After the contract has expired, circuit connections can be cancelled with immediate effect. Ports can also be cancelled after the contract has expired, although ports with active circuit connections cannot be cancelled. After the contract has expired, customers can also request a new fixed term commitment – for example triggered by a bandwidth upgrade.
Traditional / fixed model
Under the traditional / fixed model, charges are based on a traditional installation and monthly rental model. Rental charges are fixed, and do not vary from month to month (unless the customer upgrades the bandwidth).
Ports attract a one-off installation charge and circuit connections attract a one-off installation and monthly rental charge. Unlike the OD/flex model, ports do not require a contractual commitment.
The pricing for a 12 month fixed contract (2 x ports + 1 x circuit connection) is broadly equivalent to a 12 month traditional circuit contract based on an NRC and MRC.
Under the traditional / fixed model, customers can permanently upgrade connections up to the maximum port speed. Once the fixed contract expires, the rental charges remain the same and customers are able to upgrade the bandwidth or make a new fixed term commitment,
A worked example is shown below.
Fixed term contracts can be cancelled, but customers are required to pay a cancellation charge to cover the rental charges within the remaining contract term.
Standard discounts apply to installation and rental charges on circuits under 24 and 36 month contract terms.
Additional charges & general policy
In an enterprise building, where Colt needs to build a new PoP site creation, customers are charged a one off installation charge in ADDITION to the standard port charge to cover internal cabling costs in line with standard Colt policy.
Data centre cross connects are charged in line with standard Colt pricing and policy.
There are no charges for hosted cloud ports (AWS, Azure, Google, Oracle, IBM). Amazon Dedicated ports attract a one off installation charge to cover the port charge and the installation charge for the cross connect in the data centre hosting the AWS Direct Connect PoP.
New sites can also be created in offnet buildings that are within 250m of the Colt fibre network (“nearnet buildings”). By default, customers are charged a one-off installation charge. On request, this installation charge can be amortised across a fixed term contract of 12 months or greater. Customers should speak to their Colt Sales manager for further details about enablement of nearnet buildings.
The pricing for fixed contracts are aligned to Colt’s traditional pricebooks, such that the pricing for a 12 month fixed On Demand contract (2 x ports + 1 x circuit connection) is broadly equivalent to a 12 month traditional contract based on an NRC and MRC.
It is important to note that per GB usage based billing (“UBB”) is NOT supported under the On Demand offering.
Legacy pricing model
The legacy pricing model based on traditional / fixed contracts with an additional 1 hour flex option is no longer offered to new customers.
However, Colt will continue to support this model for EXISTING customers until further notice.
Customers who wish to migrate to one of the new commercial models are advised to speak to their Colt Sales team.
Enablement of port & circuit contracts
The journey for port and circuit enablement under the On Demand / flex model is shown below.
Ports are available on a 3 or 12 month commitment, with circuits available on a 1 hour flex or 3-36 month fixed term contract.
Under the traditional model (not shown), ports do not require a contract and only fixed 12-36 month contract terms are supported.
Customers have the option to choose the contract duration for each circuit connection.
The On Demand portal includes a pricing tool that allows customers to estimate pricing for new circuit connections. The tool has integrated Google Maps, so quotes can be generated on a per-building basis, including cloud locations.
The price tool allows different port speeds, circuit connection speeds and contract lengths to be selected to generate an online quote.
Colt’s Sales teams also have access to an offline pricing tool, which generates quotes that can be sent directly to customers.
On Demand services are invoiced on a monthly basis, in arrears. is important to note that under the On Demand flex pricing model, billing is on a per hour basis for both flex and fixed contracts. This means that the monthly rental charges for both 1 hour and 3-36 month fixed term contracts will vary depending on the number of days in the month.
In contrast, under the fixed/traditional pricing model, monthly rental charges do not change from month to month.
The invoice will include all charges within that month, including one off port and circuit installation fees and recurring charges for circuit connections. Customers are able to add their own references to ports and connections to allow invoices to be easily reconciled against network inventory.
An example invoice is shown below.