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BT to trial cheap leased line alternative

BT has announced plans to trial technology that will give small and medium sized businesses (SMEs) an affordable alternative to leased lines.

Andrew Craig, vnunet.com 16 Aug 2000

BT has announced plans to trial technology that will give small and medium sized businesses an affordable alternative to leased lines.

Ignite, BT's broadband data division, will begin trials of symmetric digital subscriber line (SDSL) technology on 1 December, with plans to offer it commercially by mid-2001.

SDSL is similar to asymmetric DSL (ADSL), which was launched for businesses last month. But while ADSL provides high-speed data downstream and a slower upstream speed, SDSL is the same speed in both directions.

BT said the service would suit small and medium sized businesses which send high volumes of data traffic between office branches, as well as home workers and internet service providers. It will also be aimed at businesses wanting to host their own website and wanting to use voice over IP for voice calls between office branches.

Neil Armstrong, broadband product marketing manager at Ignite, said: "We know there is a lot of latent demand for leased line access among small businesses and believe these products bring symmetric services into their price range."

The telco will offer two types of service: BT Datastream Symmetric, which connects end users to BT's broadband network; and BT Broadband point-to-point private circuits, which connect end users to each other via BT's broadband network.

SDSL services will be offered by third-party service providers and telcos. Wholesale SDSL will also be offered to large corporates with large numbers of offices. Three different data speeds will be offered: 500Kbps, 1Mbps and 2Mbps (which will run at closer to 1.9Mbps).

BT is advertising for 23 service providers, large corporates and telcos to join the trial. These will support a trial of around 300 end users, and BT will equip 12 exchanges in areas densely populated by businesses for the purpose.

Armstrong claimed SDSL would not impact BT's ISDN or ADSL businesses, but might cannibalise its leased line business.

"It certainly isn't a replacement to ADSL, it is merely another weapon in our armoury. I certainly don't see it having a significant effect on ISDN at all. We do see a significant amount of new business generally, but expect some migration from traditional leased line," he said.

BT is touting SDSL as a key enabler of voice over IP. Companies routing internal traffic between branches using SDSL could make significant savings on circuit switched calls.

Links to BT's full pricing details and trial selection criteria can be found at:http://www.bt.com/broadband/moreinfo/

See also:

BT has told ISDN customers who want an upgrade to asymmetric digital subscriber line that they can't have the service until early next year, while customers with no ISDN connection are already being signed up.  26 Oct 2000
BT has chosen 25 companies to trial symmetric digital subscriber line technology, a low-cost alternative to leased lines.  17 Oct 2000
BTopenworld has unveiled two broadband ADSL offerings aimed specifically at smaller businesses.  10 Oct 2000
The auction for 28Ghz Broadband Fixed Wireless Access licences will start on 5 September, amid fears that ballooning bids will push the price of the service sky-high and discourage take-up.  30 Aug 2000
As BT starts installing high-speed residential asymmetric digital subscriber line services this week, experts have warned that a fast connection at home doesn't necessarily mean unlimited internet speed.  29 Aug 2000
The UK telecoms watchdog is publishing a consultation paper next month on the state of the leased line market in an attempt to address user criticism of confusing pricing policies and inadequate service level agreements. But market watchers question whether the document will actually achieve anything.  14 Aug 2000
BT's asynchronous digital subscriber line will be sold in the UK requiring new lines at an extra cost to customers, despite the fact that its German rival Deutsche Telekom is offering the same service over existing ISDN lines.  20 Jul 2000
Will the arrival of ADSL spell the end of ISDN and eat into the leased line business of BT?  10 Jul 2000

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