Video Networks to speed up LLU roll-out

Takes BT on its word

By Tim Richardson • Get more from this author

Posted in Telecoms, 14th May 2004 12:08 GMT

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Video Networks Ltd (VNL) - which switched on its new broadband and digital TV service in London yesterday - is to bring forward plans to expand its service following BT's proposal to slash local loop unbundling (LLU) costs.

BT yesterday announced that LLU costs would fall 70 per cent while communications regulator, Ofcom, said it was "committed to ensuring that appropriate regulation is put in place to provide the most positive environment for the success of LLU".

Video Networks has so far unbundled around 80 exchanges in London making its HomeChoice service available to some 1.25m punters. Now, the company intends to make the service available to between 2.5m and 3m Londoners following BT's announcement to re-design and simplify its current LLU packages,.

Said Roger Lynch, chairman and chief exec of VNL: "Video Networks welcomes BT's announcement reducing the price of local loop unbundling to service providers like ourselves. The full reduction of 70 per cent will bring the UK in line with the rates offered by other large EU incumbents.

"This reduction will play a critical role in allowing the development of companies such as VNL who are willing to invest in and provide exciting new services like HomeChoice. "We plan to use these savings immediately to bring forward the further expansion of HomeChoice's availability footprint that was originally planned for the fourth quarter of 2004," he concluded. ®