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Speeds up, margins under pressure

Companies: BT.A    PNT    PXC   
13/03/2006

Over three quarters of UK broadband subscribers will have the opportunity to access faster connection speeds from 31 March, when BT ups its offering once more.
According to the telecoms giant, over 78 per cent of households will be able to access a 4Mbps service (double the current standard speed) from next month, with over 50 per cent having the option of 6Mbps and those living in close proximity to their telephone exchanges even being able to access speeds of 8Mbps. The move is intended to make it easier for people to access more complex services over the web, with concepts such as IPTV (TV delivered over an internet connection) among those expected to
catch on early.

However, BT will face a stiff challenge from a raft of rivals promising similar packages in what continues to be a fiercely competitive market. AIM-listed PlusNet, for instance, is already offering an up to 8Mbps product of its own for just £14.99 a month. Pipex Communications, meanwhile, is also up and running with an 8Mbps package, for which it charges £27.99 a month and some suppliers are even offering speeds of up to 24Mbps to consumers.

Quite how margins will hold up to this latest bout of land grabbing remains to be seen.


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