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Rural customers ‘languishing on expensive deals’
(13-12-07) - Despite more than three million LLU connections now live in the UK, millions of people living in rural areas are being charged a premium for their broadband service.
Customers in built-up urban areas are able to take advantage of the cheaper deals made available by local loop unbundling (LLU). However, because of the costs involved in unbundling a single exchange, those BT telephone exchanges with too few people connected to them - namely those in rural areas - do not get unbundled.
Michael Phillips, BroadbandChoices.co.uk product director, said: “LLU allows providers to offer much cheaper broadband to customers by bypassing BT Wholesale. However, because of the costs involved in unbundling an exchange - in excess of £30,000 per exchange - providers are loath to do this in rural areas where less people will be connected to each exchange.”
Although 75 per cent of the UK is connected to a TalkTalk LLU exchange, those customers outside of these areas pay an additional £15 a month for the same connection. Tiscali LLU customers enjoy “free” line rental, while those outside of these areas must pay £8.24 for their line rental.
“Although there is a growing debate on how to go about developing a super-fast, up to 100Mb, fibre network, there is also a growing digital divide as people in built-up urban areas are able to take advantage of cheaper broadband and ‘free’ line rental, while those in the country are left languishing on more expensive packages,” explained Mr Phillips.
“Customers living in rural areas should always check that they’re eligiable for these deals before signing up,” he advised. “Always read the small print and use a broadband checker to see if you live in an LLU area - and find out if you will be charged a premium if you don’t.”
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