LONDON - AOL has announced that it would be investing £120 million to lay down a broadband network. The ISP thus joins Wanadoo, Carphone Warehouse and sky in committing itself to local loop unbundling (LLU).
AOL will initially install its kit in 300 exchanges at a cost of £50 million. This means that BT's domination of this particular sector is all set to be challenged as major players enter the fray. "We finally have the opportunity to bring large-scale competition into the UK's national telephone network. The opportunity to compete on a level playing field with the incumbent will encourage substantial investment in digital services and content in the UK," said Karen Thomson, AOL's UK head in a statement.
"This will allow the UK to catch up with leading European countries, where unbundling is already delivering higher value services to consumers." The Internet giant added that customers will get increased speeds thereby allowing them to watch TV with broadband connections. In the UK, Bulldog offers 8 meg speeds for £9.75 a month, while BT offers 2 meg speeds at £14.99 a month.
AOL spokesman Jonathan Lambeth said that they would not join a price war, "Bulldog is pricing itself ahead to the levels that LLU may eventually allow costs to come down to. What we need to see now is who can offer the most value," he observed. "We've never been the cheapest and don't aim to be. We would say we have the best customer service and provide better value for money." As of now AOL will continue to offer 1 meg speed for £14.99 a month for the first six months and at £17.99 a month after that.
Posted
on : Mon, 23 Jan 2006 02:35 GMT | Investments News
By : Salim Patel
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