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  1. BT boss broadband scandal highlights rural residents’ plight

    When it emerged at the beginning of the week that BT Chairman Sir Michael Rake was the only member of his small village community to have access to a high speed broadband connection, cries of preferential treatment and foul play were heard.

    Residents of Hambleden in Oxfordshire were told that Sir Michael was trialling a new service that could be part of the various BT broadband deals in the future and that it was not possible to provide the rest of the properties with a similar service.

    One resident said that he had been waiting for broadband to arrive for 5 years, but Sir Michael had been given access to broadband after living in the village for just 12 months. The resident went on to say that BT had told him it would cost nearly £70,000 to connect his own home up to a high speed broadband connection.

    This incident is indicative of the wider problems facing those living in isolated communities. The current ADSL technology cannot supply homes that are a long way from their local telephone exchanges and installing fibre optic broadband requires a significant level of investment, which most believe is not met by the demand for broadband in rural areas.

    Millions of UK homes are in the same position, although government funding and the broadband tax could help alleviate the situation in the coming years. However, universal broadband availability is still a long way off and the disheartening news received by Hambleden residents was met with a similar sense of helplessness by rural residents around the UK.

    BT customers living in urban areas have less to be glum about. The next generation of Broadband Enabling Technology (BET) which Sir Michael is apparently trialling will be set to benefit town and city dwellers first and upcoming BT broadband deals should soon allow far more people to connect at high speeds in these areas.

  2. Virgin Media blends broadband and TV in new set top box

    New plans have been unveiled by Virgin Media to offer the next generation of set top box technology. Virgin currently provides high speed fibre optic broadband and digital TV services for close to 10 million households in the UK.

    It emerged that Virgin Media would be partnering with US firm TiVo, a name that has become synonymous with digital personal video recording in the United States, in order to provide a set top box which could record live television as well as offering broadband internet on customers’ televisions.

    There are currently Virgin Media and BT Broadband options which allow for the combination of a digital TV package with a high speed connection, although no provider has yet managed to offer full internet access via a set top box.

    Users will be able to take advantage of the high speed broadband connection to access a much wider variety of on-demand video content from various sources, expanding on the current Virgin Media offerings.

    Virgin Media Chief Exec Neil Berkett said that his company was aiming to push ahead with the development of the technology in order to gain an early advantage in the next generation of subscription TV.

    Although there has been no official release date for the new set top box and its associated services, a source at Virgin Media has confirmed that these will both become available some time in 2010.

    Virgin Media is not the only home broadband provider to be partnering in anticipation of a more integrated future for television and the internet. It is likely that BT Broadband options which may include on-demand video services from the BBC, currently codenamed Project Canvas, could also be emerging with support from a new set top box in the near future.

  3. Tesco sets its sights on home broadband dominance

    Since it is already widely known that around £1 in every £7 spent in the UK goes into the tills at Tesco, it is no surprise that the retail giant is looking at winning a share of the home broadband market. Tesco has had success as the provider of mobile telephone services for several years now and recently expanded its portfolio of products with the addition of mobile broadband, but it is clear that there is more to come.

    Having opened the doors to mobile broadband customers a year ago it has offered many competitive deals and began giving away free laptops with its longer contracts in mid 2009. Now Tesco will be adding its name and branding to home broadband in what could be an extremely lucrative step for the company if it is handled correctly.

    As with its mobile phone and mobile broadband services, Tesco will be piggybacking on the networks and infrastructure of another firm in order to offer home broadband to customers. In this instance it is Cable and Wireless who will supply the service, putting Tesco in direct competition with the many BT broadband deals that are currently available.

    Tesco is allegedly hoping to take advantage of the market sentiment highlighted in recent surveys in which significant customer grievances appear to be associated with many of the mainstream home broadband providers. With many customers looking to switch from their existing providers to greener pastures, there is a real chance for Tesco to tap into a disgruntled market that seems to be in need of a change as well as a good deal or two on home broadband.

    The addition of Tesco home broadband to the marketplace can only be a good thing. The price of BT broadband deals should fall across the board if Tesco adopts its usual aggressive pricing strategies.

  4. Home Broadband remains consumers’ primary connection choice

    According to a broadband expert, it is unlikely that fixed line broadband connections will ever be replaced or superseded by the mobile broadband alternatives. The comments were made by Edd Dawson, the editor of a UK broadband specialist site, although Dawson is not alone in questioning the viability and sustainability of mobile broadband services.

    The reasoning behind the argument is that consumers will continue to purchase mobile broadband only as a supplementary connection to their existing fixed line service. This is because mobile broadband costs are comparatively higher than fixed line equivalents, whilst real speeds have been revealed in a recent survey to be far lower than most manufacturers are willing to admit.

    Dawson likens the continued relevance of home broadband to the fate of desktop PCs, which in the face of stiff competition from laptops and netbooks are still managing to sell well. Laptops, like mobile broadband, are considered to be ideal for casual and occasional use, but not as a replacement for a powerful desktop PC with a fast home broadband connection.

    It is believed that the same theory can be applied across the whole spectrum of users, with home owners as well as businesses sticking with the reliability and availability of fixed line broadband whilst complimenting this connection with the roaming capabilities of mobile broadband.

    The future of mobile broadband as a primary connection has been further brought into question due to the wider availability of cheap cable broadband in the UK. Cable has several advantages over both ADSL and mobile broadband and with its faster and more consistent connection speeds it is likely to continue to grow in popularity.

    Cheap cable broadband may also become more widely available as BT develops its fibre networks, in competition with the current kings of cable, Virgin Media.

    The future is, of course, hard to predict as anyone who remembers similar reservations directed at car phones in the 1980s will attest.

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