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Two tier policy rapped
Posted by: eusty on Tuesday, May 29, 2007 - 01:52 PM
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The Carphone Warehouse has been criticised
for charging
it's AOL customers and extra tenner if they are not on a LLU exchange.
uSwitch, the price comparison site, claimed
the two-tier policy was unfair as it mainly affected those in rural areas who
had little chance of their local exchange being upgraded. It called it a "a huge divide that emerges" and claimed that this would be a
model that other ISPs would follow.
Carphone Warehouse responded saying that broadband prices have fallen 17
percent this year and that even non-LLU customers are still getting "a
great-value-for-money broadband deal", although not sure a great deal as their
LLU cousins. The response seems to be a typical 'political reply' where both the
question and the problem is talked around.
Ofcom have replied to the problem:-
| "LLU is just one way of delivering broadband, so it is certainly not like people
in rural communities don't have access to broadband because they don't have LLU.
LLU requires significant investment on the part of the providers — you can
understand why they are rolling out LLU in the first instance in higher density
areas, from a commercial point of view." "From the regulatory point of
view, there is currently no universal service obligation [USO] on providers when it comes to
broadband… unlike in fixed-landline calls, for example," adding that it would be
for the Department of Trade and Industry to decide whether to extend the USO
to broadband" |
| Ofcom statement |
If ISPs decide on this two-tier policy, which makes financial sense to them,
then customers can always vote with their feet.
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