Two changes to BT ADSL Products announced

1. It looks like BT Wholesale will be introducing the option of "usage
charging" for ISP's as opposed to the current "capacity charging" method
they use - which I guess could lead to lower prices for light users...

"BT Wholesale today set out proposals aimed at introducing more options in
the way service providers pay for broadband access, giving them more
flexibility to innovate in packaging consumer and business ADSL services.

The proposals, planned for introduction later this year, offer additional
options whereby services providers can chose to pay for their BT IPStream
ADSL broadband services based on either the maximum network bandwidth
selected, known as capacity charging, or the level of network usage month by
month, known as usage charging.

BT is briefing its service provider and corporate wholesale customers on the
plans and intends to announce indicative prices in the Spring as the details
of the new pricing options are refined.

BT believes this flexibility could lead to lower price ADSL packages for
very light usage services or lower bandwidth "entry level" ADSL services.

Bruce Stanford, BT Wholesale products director, said: "Over the coming
months it is planned to offer our wholesale customers a choice of the
existing BT IPStream pricing model and the two new options. They will be
able to choose the option which fits their business model and develop a
wider or more focussed product set which will give them the flexibility to
innovate and help drive broadband take-up by offering tailored solutions for
their customers.

"Our customers have told us they are looking for the flexibility to
differentiate their products and we are now taking our proposals to them so
we can fine-tune the new options prior to launch."

Under both proposed new options the wholesale monthly end user access charge
would be a uniform cost whatever the end user product speed. This would be
lower than the current £13 wholesale monthly charge for the BT IPStream Home
500 end user access component.

With the capacity charging option, service providers would pay a higher
charge for the aggregated access component which carries the broadband data
from the BT network to the service provider's premises (BT Central) or to
the internet (BT Central Plus). This re-balancing of the charges would
enable service providers to offer a wider range of services and the
possibility of lower priced products with low bandwidth requirements.

The usage charging option would have three components: the new, lower, end
user access charge; the BT Central or BT Central Plus element at the same
rates as the existing model; and a usage charge which would vary month by
month depending on the usage levels"

From http://www.btplc.com/Mediacentre/Arc...004/nr0405.htm

2. The second change is an alteration of BT's Broadband discount scheme for
ISP's: http://www.btplc.com/Mediacentre/Arc...004/nr0403.htm

Regards
Sunil