The whole ISP industry and
community are waiting for BT to confirm "significant"
wholesale price cuts for consumer ADSL.
Sheffield based ISP, PlusNet are of the opinion that
in addition to reducing the wholesale cost of ADSL by at least £8
per month, from the current level of £25 (excl. VAT), BT should
also reduce the activation fee, which is currently £50 (excl.
VAT) (It's worth noting that activating an ADSL service involves similar
work to that which needs carrying out to activate a standard phone
line, for which BT charges no fee).
PlusNet, like most ISPs, are very keen to see wholesale
price cuts to BTs ADSL service. Alistair Wyse, Technical Director
for PlusNet said, "Meeting the mass-market consumer
price point of £25 per month (incl. VAT) will undoubtedly create
significant demand for Broadband ADSL services," he continued,
"We want to see BT stimulate the market by cutting the monthly
rental by at least £8 to £10, and lowering the activation
fee to below the £25 mark."
PlusNet would also like to confirm that they will indeed
be passing on cost saving benefits when BT announce and get approval
on the impending wholesale price changes. "Anybody thinking of
getting Broadband now does not need to wait. If they signup with PlusNet,
the applicable monthly bill will be adjusted when the BT prices are
confirmed," Wyse commented.
As well as the main issue, above, PlusNet would also
like to see a change in strategy from Oftel.
During the evolution of Internet Service Provision in the UK, over
the last five years, Oftel have operated a strategy which assumes
that a competitive market (and therefore consumer benefit) exists
if BT are regulated in such a way as to protect the interests of the
Other Licensed Operators (or 'OLO's', such as: Energis, Colt, NTL
and Telewest). It was thought, given the growth potential of Internet
services, that the OLO's would have the necessary incentive to work
with ISPs and deliver the services the market demanded. The reality,
especially over the last three years, has been somewhat different.
"Since demand was initially created for Unmetered access and
subsequently Broadband, we have seen little or no wholesale Unmetered
or Broadband Internet services from the OLO's." Wyse continued,
"The situation is so bad, that we have ended up being dependant
purely on BT to build Unmetered and Broadband networks. Things could
have been very different if Oftel had a realistic strategy for the
wholesale of BTs network, instead of the folly of Local Loop Unbundling."
Another symptom of the situation is that even today, ISPs are still
being prevented from reselling NTL's & Telewest's networks to
each of these cable companies' customers, be it for Unmetered or Broadband
Internet access.
"It would seem that, consistent with what most people outside,
and also inside BT, have thought for a long time, BT are finally going
to take the appropriate action on wholesale aDSL pricing. We only
hope that Oftel comes to its senses and establishes formal dialogue
directly with the ISPs in parallel to the Other Licensed Operators
and BT."