BT sets sail for cheaper DSL

BT has unveiled a raft of measures designed to bring down the cost of ADSL, in a bid to boost flagging demand.

By the end of the year, BT Wholesale will launch a new version of the DSL package that allows users to provide their own DSL modem, so cutting installation prices, which goes by the name of G.DMT.

By early next year, BT Wholesale is promising a self-install DSL service. Customers who order DSL will get sent a special widget called a 'microfilter' in the post, which they plug into the telephone socket. This avoids the need for an engineer to visit.

A range of electronic improvements to the ordering and testing process is also being developed, which the company hopes will cut the delivery times from seven working days.

More importantly, it will help BT cut the cost of ADSL. ADSL from BT Wholesale currently costs £35 per month with an installation fee of £150, which compares unfavourably with modem cable access, which costs less for a broader range of services, including a bundle of TV channels.

Last month the company launched Rate Adaptive DSL, which extends the reach of DSL beyond the current 3.5km from the exchange to a new distance closer to 5.5km.

However, John Davies, COO of BT Wholesale, was not able to give an exact target figure for the prices of the new forms of DSL.

Nonetheless, he confirmed he expects demand for DSL to be "well in excess" of the one million households figure aired earlier in the month by the BT Consumer managing director, Angus Porter.