26/02/2002

BT unveil plans to reduce the cost of broadband services

British Telecom has unveiled cuts in the cost of broadband internet services in the UK.

The company plan to cut the cost of wholesale broadband access for internet service providers from £25 to £14.75 from April 1.

Announcing the cuts BT chief executive Ben Verwaayen said: "Broadband is the future for Britain and we're putting it at the heart of BT's plans for growth in the UK mass market. This will drive the whole market forward by making broadband affordable, attractive and accessible."

Mr Verwaayen revealed BT's plans to target one million asymmetric digital subscriber line (ADSL) broadband connections over BT's network by summer 2003, by:



  • Cutting wholesale line rental for consumer connections from £25 to £14.75 a month, from April 1


  • Improving the experience of BT's wholesale customers and end-users through better network performance and service quality


  • Boosting marketing, including joint projects between BT Wholesale and more than 40 service providers, to champion the benefits of broadband


  • Encouraging all service providers, including BTopenworld, to use the wholesale saving to set new prices for consumers and businesses and to mount their own campaigns to promote broadband


  • Searching for partnerships to extend broadband to less commercially viable areas




Paul Reynolds, CEO of BT Wholesale added: "We have now achieved the price that service providers told us they needed to get end user prices below £30. We have made sustained improvements in network service levels in recent months and are taking action on automation to help service providers to improve the customer experience even further.

Mr Reynolds added that he expects these new low prices to drive up demand for broadband.

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