Why Choose Us?: Press Releases

PlusNet Urge Oftel to "Think Again"
PlusNet calls for "Mass Market DSL Pricing"
Wednesday 20th February 2002 - Sheffield, UK

 

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."