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O2 to restrict broadband availability
Tuesday 07 August 2007 14:06:55 by John Hunt

O2 may not extend its LLU broadband reach beyond the current commitments of Be's roll out to try and help keep costs down. O2 purchased Be for £50m last year and their current coverage is estimated at about half the UK population. This announcement by O2 follows a further delay to the service launch which was originally expected in Spring. For the areas not in reach of the Be enabled exchanges, a wholesale agreement has been signed with BT to enable further coverage, but the service is not expected to be available nationwide.

It is unknown as yet whether there will be price parity between those in the Be enabled areas and those connected by BT. Rivals TalkTalk charge an extra £15 to customers connected through BT and not directly to their own network, whilst Sky charge an extra £12 if connected using BT. O2 are expected to launch through its chain of retails stores to help target the geographical areas where its unbundled service is available. More information in The Guardian.

Comments

Posted by keith_thfc over 9 years ago
I can just see the giant ads now at the Dome....

"Join O2 broadband. Its superfast and free if you have an O2 mobile contract over £30/month*"

* not available to large part of UK. The rest of you will have to fork out an extra £15/month for our unbeatable traffic shaped BT service with peak time congestion and the cheapest support we could afford in light of our u-turn on a bigger roll out.
Posted by warweezil over 9 years ago
No point in them offering it to me, Im a second rate customer as I dont live an an area ever likely to be unbundled under " the cherry pickers LLU charter". I already have the best I can hope for in the solid ADSL service I get from my current provider, theres nothing likely to be offered by 02 - or anyone else for that matter that will move me from Enta.
Posted by ETEE over 9 years ago
Bit of an error in the Grauniad when it says that "Carphone Warehouse loses £5 a month on each TalkTalk broadband customer connected through BT rather than directly". That was only true with "free" broadband. Now they make £10 profit after charging £15 pm.
Posted by c_j_ over 9 years ago
Be Notso Un Limited now (well someone had to say it).

Wrt to CPW £10pm profit after charging £15 pm: sounds unlikely - since when were BTw IPstream costs down to £5pm per punter (and that's ignoring ALL other costs)?

Wrt giant ads at the Dome: maybe they'll get Prince to sing 1999 at his O2 gigs 'cos that'll be around the price of their "free" broadband outside Be's previously cherry-picked areas.
Posted by herdwick over 9 years ago
about time they got on with it and gave Be some customers to handle. We might see what they're really like once they get above a busload of customers per exchange.
Posted by keith_thfc over 9 years ago
Herdwick

The best reason to join be* is that it doesn't have the same volume of customers sharing the pipes as other ISP's.

And thanks to O2's incompetence there's no danger of us having to share with many new punters in the near future :-)
Posted by uniquename over 9 years ago
Inadequate backbone/backhaul for higher numbers of high downloaders?
Unsustainable business model?

Chickens >> Roost?
Posted by herdwick over 9 years ago
"The best reason to join be* is that it doesn't have the same volume of customers sharing the pipes as other ISP's." - sure, that's now but what happens when this O2 thing goes through ?

Be* now may be like IPStream circa 2003, soon it may be the same as IPStream 2007. Enjoy it while it lasts.
Posted by keith_thfc over 9 years ago
Herdwick - what do you mean "when the O2 thing goes through"?

How will it then change to be the same as IPStream?

Cheap/free LLU-based O2 broadband might be attractive to a few punters with O2 mobile contracts but its hardly going to get large amounts of customers migrating in due to the fact that only some areas will be able to get it - so I doubt there will be the same level of nationwide promotion that has been essential for the likes of Talk Talk and SKY.



Posted by kamelion over 9 years ago
yeah but we all know how sky and CPW like to blow their own trumpets (and millions on advertising campaigns).

It's all speculation as to the pricing anyway, but it does still show that BT has a monopoly when it comes to hick exchanges
Posted by herdwick over 9 years ago
If the coverage is half the population some marketing from a name people have heard of ( O2 ) can only increase Be's customer base over its current sparse level. Contract customers with discount broadband will also add to the customer base. If they do really well they may end up with the sort of contention seen on IPStream, as opposed to the current empty network.
Posted by CARPETBURN over 9 years ago
I have to agree with herdwick, people should enjoy it while it lasts, once o2 get their grubby hands on bethere and pump out the advertising to get people to sign up the service is suddenly likely to be in-undated with new so many new users it pushes it to breaking point, if you look at virgin and when they took over telewest/ntl the same kind of thing has happened their... service gone down hill advertising to push sales gone up hill
Posted by chrysalis over 9 years ago
Article left few things out, sky not only charge an extra £12 in BTw exchanges but also have a 40gig cap and shape the connection. Likewise the )2 service in non LLU exchanges is likely to have restrictions not in place on the LLU.
Posted by bgem83 over 9 years ago
keith_thfc "not available to large part of UK. The rest of you will have to fork out an extra £15/month for our unbeatable traffic shaped BT service with peak time congestion and the cheapest support we could afford in light of our u-turn on a bigger roll out"

Cheapest support they could find?? interesting, u do realise their main support is based at their £12M purpose built, 1200 strong, customer service centre in Glasgow. staff are on around £25K and go through a brain rattling 3 hour interview before they r even considered! expensive support id say!!
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