Broadband - BT Exchange Activate scheme

"Exchange Activate"

[Note: Below is the original BT release. The charging approach was changed on 5 Jan 2004, including a substantial reduction in the up-front payment]
BT Briefing issued to Internet Services Providers (ISPs) February 2003.
Note that any questions in relation to the technology or BT policy should please be directed to BT. I will be pleased to hear your views on this and other aspects of Broadband policy and deployment. Click here for more information about my Broadband Campaign.

BT wholesale (http://www.btwholesale.com/)

ADSL Exchange Activate – New Proposition

BT has today announced plans to investigate a new ADSL Exchange proposition. The new proposition will enable Service Providers and sponsoring organisations to connect end users in blocks of 30 to any exchange that does not yet have broadband deployed, thereby generating revenue from areas of pent-up demand.

In order to test the markets response to this approach, the product definition has been refined and indicative prices released. A launch decision will only be made after market consultation has taken place.

Exchange Activate is designed to deliver ADSL from small exchanges where it would otherwise not be commercially viable. It is an innovative approach in both the technology used and the business model employed and will enable:

Reduce infrastructure costs through the use of new smaller -and thereby cheaper - ADSL exchange equipment (serving restricted numbers of end users) using existing network connections to link the exchange back to the Internet/IP network
Involve a sponsoring body with social, development or commercial interest in bringing broadband to such areas. These organisations work with a broadband Service Provider to aggregate demand, source funding and deliver service. The Service Provider, with funding agreements in place would order BT Wholesale's' ADSL Exchange Activate' service for the selected exchange.

Exchange Activate should provide a tool for a community of users to purchase from BT, (via a Service Provider) the network capability to provide high speed internet access for three years, to a fixed number of end users for a single up-front charge. Service on an Activate exchange would be limited to the 500kbit/s BT IP Stream Home product and to those Service Providers who have bought an Activate contract at that exchange.

Indicative Pricing Consultation

ADSL Exchange Activate would provide IP connectivity at a local exchange to supply ADSL, in blocks of 30 end users.

ADSL Exchange Activate would only be available at exchanges where BT has not deployed ADSL, nor announced specific plans to do so.

ADSL Exchange Activate would be available to Service Provider customers, who have a BT Central or BT Central Plus connection to link end users to the SP's network or the internet.

The price for consultation purposes is £55,000 excluding VAT for a block of 30 end users, for a fixed three year period. During this time BT IPStream Home 500 connection/cancellation charges would apply, but monthly rentals (currently £14. 75/user/month) would not be charged.

If a SP takes subsequent 30 user blocks on that exchange the charge would be £45,000 for three years.

At the end of three years covered by the fixed fee the SP would pay the prevailing monthly IP Stream Home 500 access monthly rental charge.

Ends

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