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Easynet says DSL demand is up

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Easynet claims there is "clear demand" for broadband services among business users and expects demand to increase in spite of overall market conditions.

The broadband ISP said that it had more than 7,400 business DSL customers - up from just 500 a year ago - and that the increase in orders for DSL is a result of greater competition and an improved regulatory environment.

On the issue of local loop unbundling (LLU), it said it expected seven exchanges to come online during Q4 and that the build costs and revenues per customer were "in line with expectations".

In a statement the company said: "We have seen a great deal of interest in DSL from our target business customers reflecting a clear value proposition for the product which we expect to continue irrespective of overall market conditions."

The upbeat assessment of the broadband marketplace coincided with the publication of Easynet's half-year results to June 30.

Overall revenue shot up 50 per cent to £28.6 million from £19 million during the corresponding period last year.

However, pre-tax loss trebled to £10.5 million, compared with £3.5 million in H1 2000.

In July, Easynet completed its agreed merger with ipsaris Limited, Marconi's high capacity optical network business.

Easynet claims the merger will help improve its stature as a broadband provider. ®

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