Bulldog begs BT for cheaper DSL

NEWS BT's last domestic DSL competitor is calling on the telco to dramatically cut its prices in a bid to save broadband Britain from an untimely death. Bulldog Communications believes BT is overcharging ISPs by as much as 70 per cent and is lobbying the British and European parliaments to force changes. ISPs, which install their own equipment in an exchange must still pay BT to rent the line to the actual home or office. Bulldog claims that it is currently being charged £6.17 per unbundled line per month, but is calling for the price to be slashed to £1.50. A typical local loop installation has a capacity of around 1000 lines, so this saving will only total around £5,000 per exchange - a relatively insignificant sum when considered against total operating costs. However, Vincent Pickering, Bulldog's legal counsel, insisted that the change will make a significant contribution to the viability of the ISPs business. Observers have been disappointed by the very low numbers of companies still interested in accessing local exchanges. But in another blow to fully unbundled access, BT Wholesale announced a range of cuts to the prices of its wholesale products - for customers who want to offer DSL using BT's own equipment. T move will make life even harder for unbundled operators who aim to offer services using their own equipment, as they will be forced to cut prices to remain competitive. BT's recent cuts in the prices of its own wholesale loop services are good news for consumers though in the short-term, as they have started to be reflected in lower prices.