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BT Cuts One & Raises Two ADSL Costs

Posted: 05th Sep, 2003 By: MarkJ
BT has once again cut the cost of its wholesale Datastream (third-party) broadband ADSL product by 50p to £8.05. However, the operator has also significantly hiked the price of its own IPStream Office 2000 and S2000 products:

BT DELIVERS MORE BROADBAND PRICE CHANGES FOR WHOLESALE OPERATORS

BT today announced it is to reduce further the price for its BT DataStream wholesale broadband product aimed at fixed line operators. BT is making the change following discussions with customers and Oftel regarding the price relative to the current IPStream Home 500 product.

The BT DataStream price reduction, which was notified to Oftel today, will cut the cost of the end-user element of the broadband connection by 50p to £8.05. In addition, BT will be raising the monthly rental of its 2Mbit/s business product, IPStream Office 2000, from £38 to £43; this is still substantially lower than the rental of £80. charged in March. BT IPStream S2000 rental will also go up from £43 to £48; this compares with £85 in March this year.

These changes will mean that wholesale customers taking Datastream will have more flexibility in competing with BT's IPStream products in what is already Europe's most competitive broadband market.

The DataStream price cut comes into effect tomorrow; the other changes will be effective from 16 October.

BT currently supplies broadband services to more than 150 Service Providers and has connected more than 1.2 million customers to broadband based on BT's ADSL products.

Note

BT IPStream: Utilising ADSL technology and BT's core IP network to offer broadband internet and data services to ISPs and businesses on 1,650 exchanges across the UK. Currently more than 150 ISPs buy BT IPStream providing service to more than 1,200,000 customers.

BT DataStream: Offers telecom carriers and service providers a dedicated ATM network on which to develop their own IP applications such as teleworking, branch office networking and internet access services. BT DataStream is used by OLOs to offer broadband services to ISPs and businesses across the UK.


What will be interesting to see is whether or not ISPs adopt the same approach as they often do to price cuts, which is not to change anything.

Unfortunately the increases aren't small and thus we feel that ISPs could well add a few pounds, if not a value equal to the cut itself, back onto the end-user price(s).
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