LLU, ADSL in the UK

Delphi91

Here's an interesting slant on things from the UK:


http://msn.vnunet.com/Analysis/1125775

BT wholesale broadband is a case of 'we told you so'
Rob Jones, Editor, Network News [02-10-2001]

Local loop unbundling should have matured this summer, but it is now clear it won't happen.
It seems that the patience of competitors wanting to offer broadband services from BT's exchanges has finally run out. This of course will come as no surprise to network managers, who have long known that the unbundled dream would largely remain just that.

The reach of xDSL services is inconsistent, and now alternatives are beginning to hit the market. By now, Iomart should have been settling into BT exchanges and offering alternatives to BT's
broadband services. Instead, the company is launching CopperSurf. This is a set of services aimed at those who want dedicated internet access, with a range of upload speeds, from 64Kbps for
the entry level package, to 288Kbps upload and 2.2Mbps download for the most expensive package.

Other than having an always-on service, it's difficult to see what major benefits the 64Kbps adaptive rate ADSL service offers. It is not particularly fast, has a 24:1 contention ratio (its faster, more expensive packages offer a 6:1 contention ratio) and at #95 a month, is not that cheap, either.

BT offers a similar set of packages, one of which featured on the front page of last week's Network News. One customer, who was paying around £300 a month for the 64Kbps offering, found the service ran at just 7Kbps - hardly impressive considering that a 56K modem offers a similar or better speed.

The cost difference
So why are companies turning to these alternatives? One reason is that, for businesses, the difference in cost is not that great between
ADSL and the Net Start/CopperSurf services. Add to that the 20:1 contention ration for ADSL, compared to 6:1 for CopperSurf (BT didn't give actual figures but said Net Start had much less than the
20 users sharing an ADSL line). The other, more obvious reason is that they can't get ADSL.

Handing over revenue to BT
But one interesting side effect of BT kicking its heels over unbundling is the gradual change in attitude from rivals. Six months ago, they were jumping up and down, livid with rage. Now, they
are signing deals with the incumbent giant so that they can offer adaptive rate ADSL. It means they have to hand over a slice of their revenues, because they need BT's connectivity to offer their service. But for vendors, it's better than the alternative, which is that BT has a free run to
mop up the retail market. But competition will suffer. It's better to have some broadband
access than none; but through wit or luck, BT will be able to carve up the wholesale market, just as Network News predicted last year.

Think this could happen here??????

Mike

NeilF

Maybe it is me but I found it difficult to see the point of what they are saying. Is it that BT has stalled for so long that other telcos are having to use BT's wholesale ADSL product, rather than putting their own equipment in exchanges?