Ultra Fast Broadband Threatens To Start Price War

The launch today of Be Unlimited’s 24 megabit broadband service threatens to squeeze BT’s dominance of the sector, according to technology pundits, who claim the ultra-fast service will spark a price war amongst internet service providers.

Be, which is billing the new service as an “exponential leap for internet users,” will be able to provide hugely advanced services to customers with the increased bandwidth.

Managing director Dana Pressman explains that the capacity, which can stream two High Definition TV (HDTV) channels, three or four standard TV or Video-on-Demand channels, and provide enough bandwidth for general surfing or voice calls (VoIP) will “change the way people use their computers and open up a world of opportunities.”

However, the company’s pricing of just £24 per month is what is expected to really ruffle competitors’ feathers, with a similar priced package from BT offering speeds of just 2 megabits. The telecoms giant is likely to be forced into a price cut to compete, although its speeds will still trail considerably, with its latest high-speed tests reaching a comparatively sluggish 8 megabits.

There are other providers likely to pressure BT in the near future too, with cable operator ntl recently demonstrating 18 megabit speeds using new ADSL2+ technology (see NTL Trials High Definition TV With Ultra Fast Broadband), while London-based HomeChoice has unveiled 24 megabit lines using the same technology (see HomeChoice Sets Out Next Generation Network Plans).

Reports over the weekend claim further competitors may seek to piggyback on the technical capabilities of operators such as Be, with the ISP already being approached to re-sell its 24 megabit service to rivals.

Be Unlimited: www.bethere.co.uk BT: 0207 469 2337 www.btplc.com