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Story URL: http://networks.silicon.com/telecoms/0,39024659,11007394,00.htm

BT trials high-speed ADSL media service

By Tony Hallett

Published: Thursday 10 December 1998

BT has stepped up its trials of high-speed DSL (Digital Subscriber Line) services, claiming it does not contravene restrictions that prevent the company from acting as a broadcaster.

The UK's largest telco will test BT Interactive for six months with 900 users. They will pay £30 per month each with no additional Internet call costs. The content-oriented service will be based on ADSL (Asymmetric DSL), offering download speeds of 2Mbps - 35 times faster than 56Kbps dial-up modems.

A range of media companies will provide streamed content for BT Interactive, including the BBC, Flextech, Carlton Online, Pearson Television, ITN, and Chris Evans' Ginger Media Group.

Online games and Internet access will also be part of the new offering, and a version carrying reports, interactive training and 'pushed' information will be aimed at business users.

BT currently faces restrictions on offering entertainment services due to government-imposed rules which, pending legislation, will be lifted in two years time. However, the company doesn't think BT Interactive is in breach of any limitations.

"This is not broadcast," said a spokesman for BT Internet and Multimedia. "What we're doing is not subject to the same restrictions because it's available on demand and comes through the PC."

The Department of Trade and Industry and Department for Culture, Media and Sport dismissed speculation that BT Interactive may overstep the regulatory mark. A spokesman for telecoms watchdog Oftel confirmed that as of next year, BT is likely to be allowed to operate a broadcasting franchise in addition to any online content and access services.

A trial user of BT's DSL-based services told Silicon.com that since starting to participate in the pilot project at the beginning of November he has benefited from "close to 2Mbps" download speeds.

John Swingewood, director of BT Internet and Multimedia Services, said BT will also look to digital TV as a way of delivering online content.