Tuesday, April 12, 2005
Broadband under a tenner at UK Online | The Register
Broadband is getting cheaper as local loop unbundling is finally happening in a big enough way to warrant talking about it. Unbundling means that providers other than BT are allowed to install their own equipment in BT's exchanges which then hooks into the local loop cabling that runs to subscriber's homes. The theory is that giving providers access to this local cabling means that there will be increased competition, hence lower prices, which is all meant to be good for us, the consumer. But the problem is that for a provider to offer lower prices, they must be assured of a high volume take-up, so the new cheap providers will only tend to offer their services in high density areas such as big cities and towns. Thanks to BT's remit to provide broadband to a high percentage of homes across the UK, broadband is now an option for most people, but at a price. I've spent some time this week looking around for a cheaper option only to find that no-one is offering any cheap packages in my area, because my local loop has not been unbundled. Competition is great for the marketplace, but it will lead to differential broadband provision across the UK, and it's not just the people in the big cities who want 8Mbps.
Broadband is getting cheaper as local loop unbundling is finally happening in a big enough way to warrant talking about it. Unbundling means that providers other than BT are allowed to install their own equipment in BT's exchanges which then hooks into the local loop cabling that runs to subscriber's homes. The theory is that giving providers access to this local cabling means that there will be increased competition, hence lower prices, which is all meant to be good for us, the consumer. But the problem is that for a provider to offer lower prices, they must be assured of a high volume take-up, so the new cheap providers will only tend to offer their services in high density areas such as big cities and towns. Thanks to BT's remit to provide broadband to a high percentage of homes across the UK, broadband is now an option for most people, but at a price. I've spent some time this week looking around for a cheaper option only to find that no-one is offering any cheap packages in my area, because my local loop has not been unbundled. Competition is great for the marketplace, but it will lead to differential broadband provision across the UK, and it's not just the people in the big cities who want 8Mbps.
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