Feeds

PlusNet throws broadband 'lifeline' to ISPs

Order through us, reduce wholesale cost

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

PlusNet says it's "thrown a lifeline" to the UK's small ISPs facing a 30 per cent increase in the wholesale cost of broadband. PlusNet reckons that if enough small ISPs consolidate their orders through the Sheffield-based ISP, it can make the cost of wholesale broadband much cheaper for small service providers.

Said Marco Potesta, marketing director at PlusNet: "Having looked at the situation, we believe that smaller ISPs can leverage our existing DSL platform and get back to the cost structures in place prior to the recent price rises. We also believe this can be done in such a way that not only is customer ownership and product development retained by the relevant individual ISPs, but improvements in quality of service can also be gained."

At the beginning of the month BT increased the cost of certain wholesale business-focused ADSL products to ensure that the monster telco complied with new "margin squeeze" tests. Concerned that small ISPs could go to the wall because of the price hikes, more than 70 service providers clubbed together to form UKIF, a new industry group.

While UKIF lobbies Government, the regulator and BT for change, PlusNet has already begun canvassing small ISPs to see whether enough interest can be pooled to make the plan a reallity. It is also planning to hold an open day next week when ISPs can meet to discuss the plans.

"We are making this public release to alert UKIF representatives of our proposal. PlusNet is committed to facilitating the way forward but we must emphasise that action needs to be taken quickly to ensure a successful outcome," said Potesta.

Although PlusNet has already received interest from some ISPs, UKIF gave a luke-warm reception to the idea. A spokesman for UKIF described PlusNet's offer as a "sales pitch" insisting that the ISP had "jumped the gun". However, he said PlusNet's move "showed the level of anxiety in the industry concerning this price rises". ®

Related stories

BT examines broadband price cuts
'Large number' of ISPs face ruin - UKIF
ISPs tackle Ofcom over BT broadband price hike
70 UK ISPs in anti-BT uprising
Small.biz faces higher broadband charges

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.