Feeds

Orange re-bundles broadband

It's the new unbundling

Beginner's guide to SSL certificates

Orange is to give up running its own broadband network, and will rebundle its service to leave BT Wholesale to compete with itself.

Orange will hand over its existing infrastructure to BT Wholesale, and will continue to operate as a bundled broadband provider in the same mould as Vodafone, Tesco and the dozen or so other ISPs that resell BT's connectivity.

For years the internet service providers fought with BT for access to the local exchanges so they could fit their own ADSL connections. Unlike the previous generation of modems, which could connect a customer directly from their home to the ISP's offices, ADSL can only connect the user to the local exchange, and as long as BT had the keys to that exchange no-one else could sell ADSL.

The process of permitting other ISPs into the exchange is known as "Local Loop Unbundling", and these days the keys to the exchanges are owned by BT OpenReach, and almost every exchange in the UK is now open to other ISPs. In fact many exchanges remain exclusive to BT Wholesale for economic reasons - only BT has the necessary scale.

Orange isn't the first company to decide that duplicating the kit isn't worthwhile. Most operators unbundle the more-popular exchanges then resell BT everywhere else.

Unbundling does give the ISP compete control of the connection which can be useful for premium services. TalkTalk, for example, only offers its TV service on unbundled exchanges, where it can guarantee the bandwidth, but that needs an economy of scale that Orange can't replicate.

Orange's UK broadband offering has been in decline for years, and the company told The Times that "We are not satisfied with where we stand with broadband, as our customer base is declining and our performance is poor. But we need to remain in fixed-line broadband so decided to fundamentally change what we are doing".

With Orange in the process of merging with T-Mobile it makes sense to clear up the peripheral operations - T-Mobile doesn't offer ADSL in the UK, so T-Orange (or whatever it decides to call itself) will be free to resell BT Wholesale's service under it's shiny new brand. ®

Intelligent flash storage arrays

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Consumers agree to give up first-born child for free Wi-Fi – survey
This Herod network's ace – but crap reception in bullrushes
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
New EU digi-commish struggles with concepts of net neutrality
Oettinger all about the infrastructure – but not big on substance
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.