'You can stick your local loop': Redstone goes it alone

Redstone responded quickly to Oftel's announcement yesterday that it is bringing forward the second wave of exchange access by matching the new date for the launch of its own service via distance location.

However, Bob Cushing, strategy and development manager at Redstone, ruled out a change in policy to move its exchanges into major urban areas in the wake of Oftel's ruling. The company plans to have DSL services available by April in Portsmouth initially, followed by Southampton, Newbury, Nottingham and Cambridge.

Redstone is building its exchanges adjacent to current BT sites due to the physical restraint of actual coverage capabilities. Oftel expects other operators to follow Redstone's lead, though operators planning to do so must choose between placing the exchange in a two tonne box on the street, or more securely building them in houses along the same streets as BT exchanges.

Cushing said Redstone had ruled out the idea of buying up housing for the exchanges due to the high costs, adding the company would not be prepared to share costs and locations with other operators.

However, Tim Anker, vice president of colocation at bandwidth exchange Band-X, believes distant co-location could see telco's cooperating and sharing space to cut costs. He said: "DSL operators certainly have an incentive to share costs. However, at the same time the disincentive is competition."

Anker said Oftel should encourage the emergence of mini-facilities because it will create choice and competition in the market. He said: "New exchanges create an alternative and BT is obliged to tie its cables."