Telewest and Microsoft set to tread on ASPs' toes

NEWS Telewest is delving into the application server provider market and is in a strong position to undercut rivals due to savings made from having an existing infrastructure in place. Blueyonder workwise, Telewest's broadband business ISP, is launching a service offering hosted Microsoft Exchange with Outlook to SMEs for £10 a month. Adam Smith, managing director of Telewest business communications, said rivals would be wary of its new service. Speaking to silicon.com, he said: "Every business that doesn't have a network would think this a very serious proposition." However, a lack of experience may yet hold back Telewest. Lisa Danielsson, analyst at Schema, said: "How much do they know about this service? Experience always counts and that's where others in the ASP market will have an advantage." Danielsson also said that while Telewest is in a strong position to undercut the competition, due to its existing cable infrastructure, the company's coverage is far from extensive. "They have a network in place already but it is a limited network." Tony Coleman, director of strategic alliances at ASP Netstore, said: "They're offering an interesting proposition but they only cover about 40 per cent of the UK and this is where others including ourselves can fill the void." However, Telewest's Smith revealed Telewest is also launching the service over ADSL to give it a wider reach. Smith also countered arguments of inexperience by highlighting the fact that Telewest's partner in the project is ISP CobWeb who already has an established background in ASP services. The £10 price is available to existing customers, but new users can sign up for both broadband internet access (512kbps) and 2 Microsoft Exchange user licenses for £100 per month, with additional licenses available for £10 per user per month.