Posted: 27th Aug, 2004 By: MarkJ
Cable operator
Telewest has attacked the recent introduction of 'budget' broadband ADSL services for imposing "
heavy [data usage] restrictions", which "
defeats the whole point of faster broadband":
Cap in hand for ISPs playing catch-up
The recent spate of cut-price broadband services will ultimately disappoint consumers already confused by a plethora of extravagant claims, says leading high-speed internet provider Telewest Broadband.
The cable company predicts new budget broadband services from the likes of BT and Wanadoo - which are made possible by imposing harsh usage caps on customers - will confuse consumers further as ADSL providers strive to dent cable's growing broadband market share.
Eric Tveter, president and chief operating officer at Telewest Broadband, said: "Hype over lower pricing and faster speeds is being used as a fig leaf to hide inadequate services with heavy restrictions. A low-cost 1Mb service with a 1Gb or 2Gb monthly cap defeats the whole point of faster broadband.
"We have been offering faster speeds for the past three years, including the UK's first residential 3Mb service. We also recently increased the speed of our blueyonder broadband services by 50%, at no extra cost and with no usage restrictions, which represents genuine value."
Independent research* conducted on behalf of Telewest Broadband shows that, despite massive growth in competition and promotional activity, the company has actually grown its broadband market share in the areas where both cable and ADSL services are available.
Following a record three months of broadband growth, 71% of broadband users within Telewest Broadband franchise areas are using one of its blueyonder broadband services. That compares with 69% of users 12 months earlier.
Tveter added: "Despite the best efforts of the bigger ADSL providers, consumers are still voting with their feet and exclusively promoting heavily capped services won't help their cause."Many of our own readers have also echoed fears that capping could soon become the norm rather than the exception, although to date most providers still provide unrestricted options.