Users and analysts gave a cautious welcome to BT's decision to cut
wholesale ADSL access prices by almost half.
The telecoms giant said last week that it would offer broadband
access to service providers for £14.75 per month - the price had
been between £25 and £30.
The cut should bring the end-user price down to about £30 per
month, making it more accessible to small businesses and increasing
the pool of consumers with high-speed Internet access.
The move forms part of chief executive Ben Verwaayen's plan to
expand the broadband component of BT's customer base to one million
by next summer and seven million within four years.
Gary Fisher, an analyst with Bloor, said, "Any price cut is good
news but it will not prove significant enough to attract many
smaller businesses to broadband by ADSL. Smaller firms need a
reason to go out and get broadband, such as the availability of
services like provision of software as a service."
While welcoming lower prices, industry observers also pointed out
that ADSL connection is still only available to 60% of the UK - a
fact which threatens to create a "digital divide" as those in
remote areas are left without high speed access to the
Internet.
Mike Smith, senior research analyst with Butler Group, said,
"Anything making broadband cheaper is a good thing, but many
smaller businesses will still not be able to take advantage if they
are located in rural areas. In urban areas business already has a
choice of methods of gaining high speed access but those in areas
not served by ADSL will still struggle to deliver marketing
information and host Web sites."
A Communications Management Association spokesman said, "It is
welcome news from the business user perspective. It should have
been done earlier but at least it has happened. That said, if you
live in the wrong place you're still stuffed."