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Easynet upbeat about wholesale LLU
'Well received in the market'
A number of ISPs and alternative telcos are interested in supplying broadband services direct to end users instead of routing their services via BT, according to a trading update by broadband telco Easynet.
In December, Easynet began providing wholesale broadband to telcos and ISPs at prices it claims are 30-35 per cent cheaper than those offered by BT. Using its own kit installed in BT exchanges via a process called local loop unbundling (LLU), Easynet is offering operators the chance to provide unbundled services direct to end users using its new LLUStream product.
Today, Easynet reported that the launch of LLU Stream "has been well received in the market" and the company "expects to sign up a number of ISPs, carriers, and integrators during 2005". Easynet's first customer, announced last month, was Middlesbrough-based ISP Onyx which is to sell "innovative, differentiated high-bandwidth services to its customers in the North East of England and Scotland".
Easynet expects revenue growth in excess of 20 per cent year on year and EBITDA (earnings before interest, etc) to meet market expectations.
Chief exec David Rowe expressed himself "pleased with progress and with the take-up of our next generation 'IP' services", and added: "The market is changing rapidly as alternative last mile infrastructure provides further stimulus for the ongoing 'death of time and distance' in telecommunications." ®
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