Feeds

LLU is 'uneconomic', says Energis

Won't invest in local loop

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Energis has ruled out a nationwide investment in local loop unbundling (LLU), because, it says, the figures don't stack up.

In the summer the alternative floated the idea that it might install its kit in BT exchanges and provide telecoms services direct to end users. But today the company ruled out plans to invest in LLU, seemingly on the premise that its own strategy is working - or in other words, "if it ain't broke, don't fix it".

Said Energis chief exec John Pluthero: "LLU is uneconomic for national roll-out. It involves a significant up-front investment with no apparent return in any realistic timeframe. Frankly, we've got better things to do with our cash. "We're putting all our time and effort into executing our strategy. Yes LLU success could be good for consumers, but there are other exciting technologies that we will invest in which will offer our customers even more services."

Although Energis has rejected national investment in LLU, it may still consider unbundling individual exchanges if there was a genuine need. What's more, the company is examining wireless technologies that might prove an alternative to investing in LLU.

Its decision comes at a time when both Cable & Wireless and cableco NTL have both said they plan to invest in opening up BT's network. BT Retail - the consumer facing division of BT Group - is also considering investing in LLU, since it might mean it can compete more effectively with rival operators.

The cost of LLU has fallen by around 70 per cent over the last year and there is a renewed momentum to see LLU provide genuine wholesale competition. But critics say that operators will cherry-pick the most lucrative BT exchanges in densely populated urban areas. So while large towns and cities might expect new and exciting high speed services, the rest the country could be left behind in a new digital divide. ®

Related stories

Energis dials up first profit
BT cool on board rift speculation
Ofcom provokes unbundling battle
BT cuts LLU costs
NTL joins unbundling bandwagon
C&W to throw £85m at LLU
Ofcom reveals prices for LLU

Secure remote control for conventional and virtual desktops

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.