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KCom Slashes Hulls Wholesale Broadband Prices

Posted: 17th Mar, 2008 By: MarkJ
Kingston Communications (KCom), which has been facing growing criticism from consumers, Ofcom and even the EU over the cost of broadband services in the Hull area, has announced a reduction in its wholesale network charges.

Hull is somewhat of a rarity inside the UK in that it's not covered by BTs network, leaving those resident dependent upon KCom (Karoo) for their supply. Meanwhile rivals attempting to enter the market have found KCom's wholesale charges to be too expensive:

Source 'The Hull Daily Mail': Currently, BT charges ISPs, on average, £7.63 for each household they connect to the Internet using its telephone lines, for an 8MB service. But now Kcom has told the Mail it is offering prices that match or undercut that figure. While the price reduction could mean more competition for Karoo, Kcom officials said they would welcome rivals entering East Yorkshire.

The news item notes that Virgin Media has already expressed renewed interest in Hull, although at present it has no formal plans to enter the market. Meanwhile Thinkbroadband (credits for the link) points out that the news only highlights rental and not bandwidth charges, which are an essential cost consideration for any ISP; perhaps more so than the rental.
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