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Story URL: http://networks.silicon.com/broadband/0,39024661,11025445,00.htm

ISP hits back at calls for broadband monopoly
Clara.net chief says if there is a broadband monopoly, BT should cut prices by 40 per cent...

By Mark Graham

Published: Monday 02 July 2001

A leading UK internet service provider is calling for BT to reduce its DSL prices by 40 per cent.

Steve Rawlinson, chief technical director at ISP Clara.net, claims the country urgently needs a full review of broadband tariffs - something that flies in the face of reported comments from Peter Radley, chairman of the Broadband Stakeholder Group. Radley recently said competition is only important at the retail level, and wholesale broadband services should be put in the hands of a monopoly or duopoly.

Clara.net's Rawlinson said the fact the UK is lagging so far behind the rest of Europe in broadband communications is the direct result of the "poor job done by the regulator Oftel". He added that the unbundling of the local loop an "unmitigated disaster" when comparing it to the process in both France (who started the process after the UK) and Germany.

Rawlinson said a lack of competition for BT means its prices are over-inflated and this must be addressed if the sector is to be controlled by so few interests.

He added that Clara.net would much prefer to be in the position to buy from more than one company and said that at present, it is negotiating with BT rivals Colt, Energis and MCIWorldcom to set up a broadband service.

Speaking to silicon.com, Rawlinson said: "We have no option because BT is our only choice and it currently charges £35 plus VAT and we think the price should be £20 plus VAT."

But he added: "The alarming problem is nobody has a product to offer us and there is no assurance around the corner that there will be a product either."

Radley, who is also chairman of Alcatel (UK), said he believes there is a choice, between fixed line ADSL, fast internet access from satellite and wireless companies.

But Rawlinson refuted this, saying that the only real choice for bandwidth was ADSL, because it was the most developed technology.

He said: "With DSL the cable is already laid - it's just a matter of adding some kit at each end."

The Broadband Stakeholder Group was unable to comment on Rawlinson's objections, but in his statement, Radley stressed the group, which was set up by the UK government to shape policy to encourage the take up of broadband services, will not make its final presentation to ministers until September.