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ISPs tussle over broadband access | ISPs tussle over broadband access |
(40 minutes later) | |
Internet service providers have asked the government to intervene over the price being set to give them access to BT's physical infrastructure. | Internet service providers have asked the government to intervene over the price being set to give them access to BT's physical infrastructure. |
Giving rivals access to BT ducts and poles is seen as a crucial element to get fast broadband to rural areas. | Giving rivals access to BT ducts and poles is seen as a crucial element to get fast broadband to rural areas. |
But ISPs argue that the prices set by BT are four to five times higher than their underlying costs. | But ISPs argue that the prices set by BT are four to five times higher than their underlying costs. |
BT said that its prices were reasonable and laid down the gauntlet to rivals. | BT said that its prices were reasonable and laid down the gauntlet to rivals. |
"The fact is our proposed prices for duct access compare very well with European averages," the telco said in a statement. | "The fact is our proposed prices for duct access compare very well with European averages," the telco said in a statement. |
"BT is the only company who has installed broadband equipment in exchanges serving the last 10% of the UK and so we would question whether these companies are genuinely interested in serving rural Britain given their track record. | "BT is the only company who has installed broadband equipment in exchanges serving the last 10% of the UK and so we would question whether these companies are genuinely interested in serving rural Britain given their track record. |
"It is highly ironic that we are being criticised by some companies who provide little or no wholesale access to their assets," it added. | "It is highly ironic that we are being criticised by some companies who provide little or no wholesale access to their assets," it added. |
BT set the price for duct sharing in January. Prices vary but start at £0.95 per metre, per annum. | BT set the price for duct sharing in January. Prices vary but start at £0.95 per metre, per annum. |
For the sharing of overhead poles, Openreach proposed a price of £21 per pole attachment. | For the sharing of overhead poles, Openreach proposed a price of £21 per pole attachment. |
Policy failure | Policy failure |
But ISPs believe the prices are far too high. | But ISPs believe the prices are far too high. |
In a joint letter to communications minister Ed Vaizey, ISPs warn that plans to open up BT's ducts will not work if the price isn't cut. | In a joint letter to communications minister Ed Vaizey, ISPs warn that plans to open up BT's ducts will not work if the price isn't cut. |
The letter, signed by Virgin Media and TalkTalk among others says the Physical Infrastructure Access (PIA) trial, which is one of the current government's key broadband policies, "will be a commercial and policy failure if Openreach does not revise its prices". | The letter, signed by Virgin Media and TalkTalk among others says the Physical Infrastructure Access (PIA) trial, which is one of the current government's key broadband policies, "will be a commercial and policy failure if Openreach does not revise its prices". |
Openreach is the BT spin-off responsible for maintaining the telco's network. | Openreach is the BT spin-off responsible for maintaining the telco's network. |
In the letter Virgin Media said: "It would be more cost effective to build an entirely separate duct and pole network in parallel with BT's existing network". | |
So far one one company has signed up to the duct-sharing scheme. | So far one one company has signed up to the duct-sharing scheme. |
BT said that it was "disappointing that this letter was shared with the media several hours before ourselves". | BT said that it was "disappointing that this letter was shared with the media several hours before ourselves". |
"It's a shame that some of the companies involved seem keener to spend more time talking about this process than actually working on it. | "It's a shame that some of the companies involved seem keener to spend more time talking about this process than actually working on it. |
Fibre plans | Fibre plans |
The news comes as BT cranks up the speed on its copper network, to deliver up to 20Mbps (megabits per second) to 80% of UK homes by the end of the year. | The news comes as BT cranks up the speed on its copper network, to deliver up to 20Mbps (megabits per second) to 80% of UK homes by the end of the year. |
Few households are likely to get top speeds because of the limitations of the ADSL technology. | Few households are likely to get top speeds because of the limitations of the ADSL technology. |
Ofcom estimates that the average speed for an "up to 20Mbps" package is 6.2Mbps. | Ofcom estimates that the average speed for an "up to 20Mbps" package is 6.2Mbps. |
The telco has also revealed that its Fibre-to-the-Cabinet (FTTC) technology now reaches four million homes. | The telco has also revealed that its Fibre-to-the-Cabinet (FTTC) technology now reaches four million homes. |
Some 30 ISPs are offering customers FTTC, buying it wholesale from BT. | Some 30 ISPs are offering customers FTTC, buying it wholesale from BT. |
It offers speeds of up to 40Mbps and is now available to more than 4 million homes and businesses. | It offers speeds of up to 40Mbps and is now available to more than 4 million homes and businesses. |
By 2015, BT has pledged to offer some form of fibre broadband to two-thirds of homes in the UK. | By 2015, BT has pledged to offer some form of fibre broadband to two-thirds of homes in the UK. |
To ensure the final third does not miss out, the government has set aside a £530m fund, drawn from the BBC licence fee that was originally earmarked to help the transition to digital switchover. | To ensure the final third does not miss out, the government has set aside a £530m fund, drawn from the BBC licence fee that was originally earmarked to help the transition to digital switchover. |
Four pilots areas intended as testbeds for rural broadband are due to be allocated at the end of April. | Four pilots areas intended as testbeds for rural broadband are due to be allocated at the end of April. |
The government has also invited councils to bid for some of the money. | The government has also invited councils to bid for some of the money. |
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