The Register has details on the news that Pipex looks like it will be offering its services via local loop unbundling on around 60 exchanges. Apparently the provider has identified sixty exchanges where the number of Pipex users make it worthwhile unbundling. Apparently this will offer a payback period of less than two years. Pipex currently has around 215,000 broadband users.
While any provider will enter LLU because it will seem attractive financially, most of the quotes we have seen on this Pipex news appear to concentrate on the financial aspects of the move, rather than the technically exciting issues of higher speed services, and ADSL2+ services for example. It also seems that we should not expect a nationwide type roll-out, since the service is called 'strategic local loop unbundling', which seems to mean only where Pipex have a high enough density of existing customers.
The timing of this announcement appears somewhat odd to us. This is because it follows just a week after an announcement to implement traffic management on their IPStream customers. We are keeping a close eye on how this traffic management is implemented, since it can take a while to determine precisely how it works, and how an ISP handles the issues that get raised. We hope to look more closely at the issues raised by the traffic management next week.
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