BT trims up-front DSL prices
Exchange Activate package targets 600 exchanges BT considers too remote
BT has cut the up-front charge for bringing broadband to small and remote communities after testing mini DSL access modules in eight locations across the UK. The total cost of upgrading, however, has only fallen slightly.
A BT Wholesale representative said that it revised the payment model after feedback from service providers and others interested in bringing broadband to small communities.
The ADSL Exchange Activate package targets the 600 exchanges that BT considers too remote to set trigger levels for.
It allows communities to buy high-speed access for 30 users for an up-front fee of £25,000, as opposed to the original price of £45,000. Extra blocks of 30 users cost £10,000, a third of the original price.
"The problem with the first pricing structure was the 31st user," said Julie Ramage, a senior analyst at telecoms research firm Analysys.
"The service provider would be taking a big risk by upping the capacity: the 31st user cost £30,000. That risk has now dropped to £10,000."
While the new scheme cuts the up-front payment by £20,000, users will now pay connection and line rental charges at the BT IPStream Home 500 rate.
Analysys estimates the rental charges alone will bring BT about £14,000 for every 30 users over 36 months, bringing the total to £39,000.
Connection charges add a further £1,500 to the figure, making the actual discount from BT £4,500.