Broadband or death for cable firms

UK operators press ahead with rollout plans

Nick Farrell

Despite crippling debts and tougher competition, UK cable operators are pushing ahead with the rollout of broadband.

Telewest is to launch a 1Mb system to provide a super-fast internet service towards the end of the year. The operator, which is about £5bn in debt, said that it could launch the service without any substantial new investment.

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NTL, the UK's biggest cable company, which is in the red to the tune of £12bn, is expected to follow suit in a couple of weeks.

Telewest chief executive Adam Singer is on record as saying that "anything less than 512Kb is the digital equivalent of a Zimmer frame".

Broadband cable users currently pay £25 a month if they take the internet service bundled with other telephony and pay television products.

The cost is much cheaper than BT-based ADSL, which is typically £40 to £50 a month, and the companies argue that they have a long-term technological advantage over the incumbent.

But wholesale price cuts unveiled by BT earlier this week mean that ADSL end user prices are set to fall to under £30 from 1 April, meaning that the cable companies will have to offer a faster service to maintain an advantage.

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