SMEs targeted by BT's two-way satellite broadband

Managed service available for ISPs to sell on to small firms and SoHo users in rural areas

BT has unveiled a new two-way satellite broadband service for ISPs and other licensed operators to sell to SMEs and home offices in rural areas.

The service, which provides 512Kbps download and 128Kbps upload speeds, is already commercially available through BT Retail, with other operators set to provide services soon, according to John Wing, head of satellite broadband at BT's Broadcast Services (BTBS) division.

Peter Reynolds, managing director of Networks Unlimited, which sells satellite broadband services from Aramiska, said: "Aramiska can install within nine days of the order being placed. I don't know if BT can do it so quickly. Are we worried about the service? The answer has to be no."

BTBS will provide the fully managed service, including installation and customer support, to other operators in two packages, Satellite Broadband 500 Lite and Satellite Broadband 500 Plus. The other operators can then use the channel to sell the service to end-users.

Satellite Broadband Lite is aimed at home workers, needing high-speed web and email access, and will be sold to operators for £46.99 per month per user, with equipment starting at £699 and standard installation costing £250.

Satellite Broadband Plus, suitable for LAN environments and companies needing heavier file download capacity, will cost operators and ISPs at least £85.99 per month per user, with equipment prices varying on business needs.

"It is aimed at SMEs and small-office/home-office markets in areas where there is no traditional Asymmetric Digital Subscriber Line," said Wing.

Ian Fogg, head of broadband research at analyst firm Jupiter Research, said satellite should be the "last resort" for firms looking to install broadband.

"Because the connection has to go up to the satellite and then back down again, it is not good for activities such as web browsing, voice over IP or online gaming. It is good, though, for large software downloads and sending large amounts of data downstream for services such as email," he said.

[email protected]