'Cheap' DIY ADSL not all it seems

BT's wheeze to make broadband cheaper by allowing customers to supply their own modems looks like it may not be cheaper after all.

A range of independent ISPs, including Zen Internet and iomart, have announced that they are already taking orders for the service, which is due to launch early next year.

Current ADSL services are sold as a bundle that includes the modem, the cost of which is added to the monthly rental.

BT claims that allowing customers to supply their own modem will allow them to offer ADSL with a lower installation and monthly rental costs.

However, when the service goes live BT will be charging a £50 "installation fee" to cover the cost of an engineer working in the local exchange.

The user will also have to pay for their own modem and a small box called a microfilter to divide their telephone and ADSL lines.

Microfilters cost around £15 and DSL modems cost upwards of £60, according to Ian Buckley, marketing manager of Zen Internet.

So the least someone could pay is £125, which is actually cheaper than the £150 BT will be charging when the current half price offer finishes next year.

DIY installation should also cost £5 less per month than the prices of current DSL offerings, so DIY could be £85 cheaper for the first year.

However, most ISPs are recommending more expensive modems costing above £100 - so the first year's saving could be minimal.

Buckley reckons that the attractions of DIY ADSL will actually be more to do with the greater control and flexibility it gives business customers.