NTL offers broadband via cable

Broadcasting and communications giant NTL has confirmed a May launch for its broadband package for business users.

The Business Essentials package will use cable modems to offer 'always-on' access of up to 0.5Mbps, although digital subscriber line (DSL) users in the UK can obtain speeds of between 0.5Mbps to 2Mbps.

NTL's extensive cable network means it can offer broadband access to a greater geographical range of customers than BT can reach with DSL, however.

Cable hasn't enjoyed a strong uptake by businesses. Analyst Ovum said that there are 4.8 million cable subscribers in the UK, of which only seven per cent are businesses. NTL hopes this will change.

"Our cable network covers 75 per cent of all businesses in the UK. We have a lead on DSL as of today, and are trying to establish a wider lead in this area. We have a better plan in most respects than BT," claimed NTL chief executive Barclay Knapp.

Cable coverage has its own drawbacks, however. "The classic problem with cable networks is that they aren't geared towards business networks," said Tim Johnson, a senior analyst at Ovum.

Cable has mainly been rolled out to residential rather than business areas, and it doesn't offer the reliability or range of services boasted by traditional telecoms services, he added.

In areas where bandwidth is limited, some users may end up paying more to avoid mass demand overloading NTL's network capacity. "NTL would be advised to cherry-pick its clientele rather than go for a mass rollout," said Johnson.

NTL doesn't always require access to BT's local exchanges, and therefore isn't dependent on local loop unbundling because its cable network can connect directly to the customer.

If the company needs to connect to the local exchange, however, it doesn't believe that it will have to rely on Oftel to minimise the distance that data traffic travels on BT's network, which would reduce how much it pays to BT.

"We're one of BT's biggest customers, so we have other means than regulation to put pressure on BT. We're in a significant position with or without local loop unbundling," said Chris Hutchings, group managing director for NTL business.

"NTL is being a little cocky. It has a tenth of BT's resources and is still losing money," claimed Johnson.

Also published in Computing