Following on from NTL’s announcement earlier this week to increase its speeds to 10Mb, Telewest Broadband has just announced plans to shake-up its blueyonder internet services and outlined its capability to go much MUCH faster in the future.

Telewest have increased their broadband speeds across all their tiers with the top tier now reaching 10Mb at no extra cost. The full spread is now:

• 512k increases to 2Mb for £17.99 (upstream increased from 128K to 256K)
• 1Mb increases to 4Mb for £25 (upstream increased from 256K to 384K)
• 2Mb and 4MB (two tiers merged) increases to 10Mb for £35 (upstream of 384K).

All tiers remain uncapped which is a different approach to Ntl. Ntl are providing all users with a 10Mb connection, and users pay for how much data they use. Telewest’s approach relies more on users paying for the speed that they need. They say that this based on research that shows that bandwidth caps just confuse users. The company believes its unlimited policy will give customers peace of mind and the ability to get the most out of rich media content.

I prefer Telewest’s approach as ntl run the risk that users will realise that they aren’t downloading a huge quantity and can get by with a smaller cap with a lower ARPU, whilst ntl still have to bear the network cost of providing the 10Mb service. Telewest’s approach will have a better margin as users have to pay for their extra bandwidth. If ntl want to encourage upwards tier migrations then they need to provide compelling content. Unfortunately this isn’t available and all I think they have successfully done is prematurely erode their margins.

Telewest are planning a much more aggressive upgrade program than ntl with upgrades starting next month and completing in early 2006, whereas ntl won’t have completed their upgrades until the end of 2006. Also, unlike faster services touted by ADSL providers, where the maximum speed of internet access is dictated by distance from a phone exchange, the new cable services will be available to every home with access to the company’s network.

Tagged on at the end of the release is some even more exciting news. Telewest gave some details of future speed increases and they claim that with the advent of DOCSIS 3 or Ethernet to the home, cable services of up to 50Mbp/s could be possible in 2007.

Eric Tveter CEO added:

“Cable is built for speed and, with the advent of the digital home, we are capable of satisfying even the most bandwidth-hungry family.”

As a current 4Mb soon to be 10Mb customer I hope Telewest deliver on this promise!

Update: I’ve just realised that the old 4Mb service which cost £50 is now £35. Yippee!!!!

More: Jo Salmon

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