BT revise ADSL price increases

From http://www.theregister.co.uk/2004/10...holesale_hike/

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BT has reduced the level of proposed price hikes for some of its wholesale
broadband services following pressure from the industry and concerns that
ISPs could go bust if they were allowed to go ahead unchecked.

However, the reduction in the amount extra ISPs will be charged is only
small and still means that small ISPs face a hefty increase in overheads.

Last month, the cost of some wholesale services geared towards small ISPs
went up by around 30 per cent causing many providers to warn such price
rises would force them out of business.

BT insists the price rises are necessary for it to comply with "margin
squeeze tests" set by the regulator.

Now BT has re-worked the figures and managed to shave off some of the
increase. At a meeting last night between BT and the Internet Service
Provider's Association (ISPA), the UK's dominant fixed line telco said the
price rises would be reduced by between five or six per cent.

Although welcomed, the cut still means that small ISPs unable to benefit
from economies of scale face a wholesale broadband price hike of around 23 -
24 per cent.

"Whichever way you look at it, it's still a big increase for small ISPs,"
said one industry insider, while another said it was "better than nothing".

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Regards
Sunil