ISPreview - ISP's Talk Migration, ADSL2+ & MAX
ISP's Talk Migration, ADSL2+ & MAX
By: Mark Jackson - February 7th 2007 : Page 3 -of- 3
"Although the new pricing will ease the pressure of ISP's it will certainly not increase their profits'"

4) BT has confirmed plans to further reduce its own wholesale ADSL charges once unbundled (LLU) UK lines pass the 1.5m mark during May 2007, what are your thoughts on this?

http://www.ispreview.co.uk/cgi-bin/news/viewnews.cgi?id=EEyFukElllVntfOrus

EntaNet: A cynical person would say that they have managed to cut the prices only in the areas where they are facing the greatest competition from LLU providers rather than reducing the bandwidth costs as requested by the majority of Small – Medium ISPs. They would also assume that the views of BT Retail were taken as the driving force for this decision.

Vispa: Good news, LLU providers have had their fair share at the market, now BT are attempting to pull the business. Although the new pricing will ease the pressure of ISP's it will certainly not increase their profits tenfold. Will we see further retail price reductions? I don't think so. ISP's will most likely use the extra cash to invest in more centrals, better networks & wBBC!

Firenet: I am rather please about this notice, thinking that the savings will be passed onto the customer, so that the likes of Firenet, ISPbox, broadsurf, and my other branded companies can compete with the much larger companies who are doing well from LLU.

I hope that in the next 3 years we should see the prices of retail broadband go down to the prices of near or below 10 pounds for everyone in the UK. This will help all internet businesses do well in maintaining the churn rate due to affordability issues from the customer.

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Our sincere thanks go out to all three ISP’s for taking part and having their responses back inside such a short space of time. Thanks!

From this it’s clear to see that ISP’s, especially smaller ones, are struggling with the burden of having to deliver faster and faster services. It will be interesting to see how all these future developments pan out and we’ll return to asking that very same question in due course.

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