U.K. Discount Broadband Provider Gives Up The Ghost

Communications Today, Nov 4, 2002

ET Global Solutions, a British ISP that tried to drive ADSL prices into the basement, has fallen victim to low margins and gone out of business. ET was one of several bargain broadband providers that sprang up in response to a government-mandated wholesale price cut from incumbent provider BT Group [BTY]. Some of these providers took consumer prices below GBP20 ($31.29) a month. In July, ET announced pricing for its single computer Homeworker plan (512 kbps down/212 kbps up, 50:1 contention with e-mail and web hosting) of GBP18.95 ($29.65) a month. Even subscribers wondered whether ET could survive on such low margins. Apparently the answer was no. ET's subscribers will be taken over by Gio Internet, which is offering service for GBP17.99 ($28.15) a month, but is subsidizing that price as a promotional offer and plans to move prices up to the GBP20 ($31.29) range by the end of the year.

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[Copyright 2002 PBI Media, LLC. All rights reserved.]