BT trials low-cost satellite internet

BT is set to trial a fast, satellite-based internet access product for use by people living in remote areas who have so far been left out of the 'broadband revolution'.

Users will have an always-on downlink of 256kbps - half the speed of the cheapest ADSL lines.
The uplink part of the user's internet connection will be supplied by a normal dial-up modem or LAN. They will also be able to book a faster link - up to 4mbps for short periods - if they need to download large files.

BT Wholesale will charge "less than £400" to connect users to the service, including the cost of a 65cm satellite dish, and a rental fee of around £15 per month.

End users will receive the service via an ISP such as Freeserve, AOL or BTopenworld, who will probably charge between £20 and £30 per month.

The service is being targeted at SMEs and heavy using consumers who don't have access to broadband through ADSL. Currently 40 per cent of UK households, mostly in rural areas, are out of range of ADSL.

The service is being supplied by BT Wholesale, and doesn't replace the two-way satellite broadband service being supplied by BTopenworld in collaboration with Israeli company Gilat Satellite Networks.

BT Wholesale would not comment on which company it is partnering with to provide the fast internet service.

Similar one-way satellite internet access has sold well to certain user groups in Italy, Germany and Switzerland.

There are also several companies offering it in the US, where the relatively low population density makes satellite the only viable option for large areas.

Roger Runswick, analyst at Schema, said: "It's a viable price but an insignificant market. There has to be a risk that the market is not large enough to sustain this as a commercial service."