Telefónica UK is to stop providing wholesale
narrowband services to ISPs because of dwindling demand from end users.
Instead, the UK subsidiary of the Spanish telco intends to focus on the
provision of broadband services to the ISP and corporate marketplace.
From 16 December Telefónica UK will no longer supply unmetered and dial-up
wholesale narrowband services.
Some 20 ISPs affected by the changes have been told of the decision. They
can either source their wholesale narrowband services from a provider
working with Telefónica to manage the switchover or opt for another outfit.
Telefónica declined to say which operator it is working with to provide
an alternative service, which ISPs need to find an alternative supplier and
how many end users are affected, although it's understood to run into
"thousands".
Instead, it said in a statement: "All clients affected by this change
have been made aware of the circumstances and Telefónica UK is working
closely with them to ensure a smooth transition and minimal disruption to
their businesses."
The decision to ditch dial-up was made due to the continuing fall in demand
for wholesale narrowband services as more and more people hook up to
broadband.
Telefónica also signalled its interest in providing unbundled wholesale
services following. Said chief exec Andrew Peters: "For Telefónica UK, the
future for wholesale services lies in broadband, particularly the creation
and delivery of wholesale broadband services, which ensure ISPs can extend
their offerings.
"We are committed to creating wholesale broadband services, and are actively
pursuing a number of options that will allow ISPs to have more flexibility
and choice on network sourcing, including those arising from the more
favourable climate for LLU in the UK," he added.
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