BT is flexing its financial muscles in the Frame Relay market, introducing cost reductions on existing services and launching a further two Framestream packages.
For services ranging from 64Kbps to 2.048Mbps, BT claims it is reducing connection charges by up to 66 per cent.
The telco has also launched the Framestream Corporate Connect and Framestream Lite services in an attempt to increase its market share in this growing sector.
"Frame Relay has proved much more popular with the end user than BT anticipated, so it is not surprising that it now wants to compete more competitively in this area," said John Matthews, Ovum analyst.
According to BT, the services and price reductions will make the upgrade to bandwidths of 64Kbps or above more accessible to a wider range of businesses.
"Before BT launched Framestream last year, it was not selling Frame Relay very hard," said Paul Davis, Frame Relay product marketing manager at Energis, "It was more concerned with private circuit. That has allowed others to take the initiative."
Matthews confirmed: "Broadband connectivity for business is growing much faster than narrow-band voice. BT can't afford to lose out." Framestream Corporate Connect allows users to upgrade their bandwidth requirements from 64Kbps to 256Kbps for #400. Using DSL technology, the service can extend the bandwidth capability of twisted pair cable to 256Kbps. The service is aimed at customers looking for a Virtual Private Network to interconnect geographically dispersed sites.
Framestream Lite is 10 per cent cheaper than the Standard Framestream service. It provides a 64Kbps access service for businesses that exchange low levels of data between branch sites and a central site.
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