Feeds

BT to rent cheaper FTTP lines to ISPs - if they stump up £1k a go

Hefty one-off fees demanded for 330Mbps broadband

Remote control for virtualized desktops

BT will demand pricey one-off construction and installation fees from ISP providers that want to offer blistering fast fibre products to their customers.

The national telco said it was up to those companies to decide whether to pass on the costs, which are expected to start at about £500 and could climb to well above £1,000 in some cases depending on the distance of a property from BT's fibre network. The prices are yet to be finalised, however.

The company said it will apply the high one-off charges to its service after confirming that from next June it will cut its rental price of "ultra-fast" fibre-to-the-premises (FTTP) tech - which has a theoretical top speed of 330Mbps downstream and 30Mbps upstream - to £38 a month from the current £60 price tag.

That move will coincide with the launch of BT's FTTP on-demand product, which will start rolling out next spring and also be punted at £38 a month to ISPs.

BT said:

As Openreach has previously indicated, communications providers will be charged a distance based construction charge for FoD [fibre on demand] due to the extra work involved in providing a direct fibre connection. It will be for communications providers to decide whether to pass this charge on to their customers.

Installation fees of £500 will be slapped on top of the one-off construction charge, BT added.

The company massively relies on its copper infrastructure to deploy fibre-optic broadband services to its customers. It is rolling out the so-called "mixed economy" tech to roughly 65 per cent of the UK at a cost of £2.5bn.

Three-quarters of the upgrade will involve fibre-to-the-cabinet (FTTC) installs, which involves Openreach engineers laying fibre from BT's exchange to a street-side box - the service is then carried into homes and businesses via a copper phone line. The FTTC product boasts theoretical download speeds of up to 80Mbps and upload speeds of 20Mbps.

Many fewer homes and businesses will be offered FTTP products in Blighty because BT has found that rollout to be costly, disruptive and time-consuming.

BT described its expensive FTTP on-demand product - which it is mainly aimed at small and medium-sized companies - as a way of "future proofing" its network because it can be deployed from its street cabinets.

"It is now time for us to focus further on FTTP and I am pleased to say that we are making it more affordable than ever," gloated BT's Openreach managing director Mike Galvin. "I am sure that small businesses will welcome this major price cut and I am also sure that our fibre on demand plans will be of great interest."

Of course, the reality is that many ISPs may find such a product difficult to shift given that it's likely they would have to fold BT's hefty fees into the subscriber costs for their austerity-slapped customers. In other words, despite BT's promise of a price slash, FTTP remains something of a vanity product for rival telcos who would need to demand a high monthly payment from their punters to get any sort of return on their investment in the tech. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.