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AOL go LLU
Posted by: eusty on Friday, January 20, 2006 - 10:59 AM
AOL

AOL has at last announced it's plans to join the Local Loop Unbundled (LLU) market, following rivals such as Wanadoo, Zen, PlusNet and a whole bunch of other ISP's

It has already carried out beta testing at the Battersea and Ealing exchanges, and so far has assembled a team of 100 people to oversee the large scale rollout. Initial costs are put at £50 million which will put it's kit into up to 300 exchanges, or 20% of the UK population. If this proves popular then it plans to increase the number of exchanges with it's own equipment in to 1000, or 50% of the population, this doesn't come cheap and will add another £70 million to the total bill, which is being funded by parted company Time Warner.

"We finally have the opportunity to bring large-scale competition into the UK national telephone network. This will drive innovation and efficiency in the market, which I believe will result in consumers benefiting from greater choice, better value and new kinds of digital services [..] The opportunity to compete on a level playing field with the incumbent will encourage substantial investment in digital services and content in the UK. This will allow the UK to catch up with leading European countries, where unbundling is already delivering higher value services to consumers. We look forward to working with Ofcom and BT to bring these benefits to British homes."
Karen Thomson, CEO AOL UK Limited.

AOL is obviously looking forward as it's equipment will be ADSL2+ compatible, enabling speeds far in excess of the BT's current ADSLMax trials which stand at 8Mbps. With such a big player this is bound to worry a few BT execs, but it was only a mater of time before AOL entered into this market.

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