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Easynet invests more in LLU

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Easynet plans to spend £3m upgrading and promoting its own brand of unbundled broadband.

Easynet has earmarked £2m to upgrade its local loop infrastructure during the first three months of the year. A further £1m is to be splashed out in marketing and support costs.

This additional investment comes as the UK broadband operator reiterated that it remains "confident of signing a number of contracts in the first half of 2005" for its LLUStream product.

Launched in December, LLUStream is a wholesale broadband service that the telco claims is between 30-35 per cent cheaper than BT. Using its own kit installed in BT exchanges via a process called local loop unbundling (LLU), Easynet is offering operators the chance to provide unbundled services direct to end users using its new LLUStream product.

Middlesbrough-based ISP Onyx was the first to sign up to the service and Easynet remains upbeat that other deals will follow shortly.

Publishing prelims for the year to the end of December Easynet saw revenues rise 24 per cent to £144.1m compared to £116m at the end of 2003.

At the same time Easynet managed to narrow its operating loss to £13.9m down from £15.1m, and insists that it remains on track to turn cash flow positive during Q2 and to turn EBIT (earnings before interest etc) positive by the end of the year.

Seeing "opportunity in our wholesale LLU service LLUStream" chairman Keith Todd said: "The changing regulatory environment in the UK has provided further stimulus to the market for 'next generation' Broadband services and we are well positioned to capitalise on this during 2005."

Shares in Easynet were down 7.5p (7.46 per cent) at 93p in early trading. ®

Related stories

Easynet upbeat about wholesale LLU
Onyx hooks up with unbundler Easynet
Onyx hooks up with unbundler Easynet

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