The decision by the BT Group to invest £1.5 billion in a super-fast broadband network will change the internet landscape in Britain, according to experts.

BT's plans could effectively knock out the competition, with the exception of cable operator Virgin Media, which will shortly offer a 50 Mbs service.

Analysts at Goldman Sachs told Reuters that BT's plan highlights the importance of higher broadband speeds but pointed out that Virgin will have a two-year head start.

Under BT's new plan, BSkyB, Carphone Warehouse and Tiscali could offer their clients access to the same broadband through wholesale agreements.

But BT's commitment to fibre optic cabling means it could close its exchanges, which would be a major problem for rivals who have relied on BT's copper network.

A spokesman for BSkyB told the news agency: "BT has much to offer but consumers will lose out if the right conditions are not in place to allow other providers to compete effectively."

BT claims its super-fast broadband service will deliver speeds of up to 100 Mbs, rising to more than 1,000 Mbs in the future.


Wednesday, 16th July 2008

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