Feeds

PlusNet throws broadband 'lifeline' to ISPs

Order through us, reduce wholesale cost

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Seven Steps to Software Security

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.