BT's 'infill technology' not up to the job

22 May 2002

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BT's proposed broadband solution for business users in remote and rural areas of the UK has failed to impress industry experts.

Trials of BT's one-way satellite service begin at the end of this month and BT openly admitted it is an "infill technology".

The service is designed to offer at least some manner of fast access to those beyond the perimeters of DSL and cable.

While download speeds are offered at speeds of up to 256Kbps, upstream traffic must be sent over standard dial-up connections, which adds an additional layer of cost, as well as frustration to the business user.

However, BT claims that higher speeds - up to 4Mbps - will be available on a pay-as-used basis as the trial progresses.

Paul Reynolds, chief executive of BT Wholesale, said: "It is not true broadband, but it will provide much faster internet access to many people who could otherwise be denied."

But Mark Blowers, senior researcher at the Butler Group, anticipated very little take-up, even among customers keen for faster downloads. "It won't be of any interest even to small businesses. This service offers no advantage

for them."

He added that consumers would be unlikely to stomach the connection fee once service providers added their margin for such a limited service.

"I can't see people being that interested. People want more now. It doesn't give anything useful in remote areas," Blowers said.

Gavin Young, technical director at the DSL Forum, asked if remote users were that desperate for fast download speeds. "A lot of people would say it's the broadband mechanism of last resort. If you are in a geographic location that offers no alternative but extensive teleworking, this may be an option."

BT claimed the trial wholesale price was likely to be less than £15 a month rental to service providers with a one-off connection charge, expected to be less than £400, for the equipment and installation of the dish at the end user's site. End-user pricing, to be set by providers, is not yet available.

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