[BT opts for a revenue-sharing approach for ADSL rollout ]
This is a little old, but I don't recall seeing it posted. The revenue-sharing angle is interesting...
Steve
Date: Thursday, March 6, 1997
Source: FinTech Telecom Markets
FinTech Telecom Markets via Individual Inc. : BT is set to announce an innovative revenue-sharing deal with three manufacturers -- Alcatel, Fujitsu and Nortel -- for the supply of asymmetrical digital subscriber line (ADSL) equipment.
The deal is thought to involve BT and the manufacturers sharing the expense of rolling out ADSL and also the revenues accrued from it.
It is thought to be the first time that BT has used such a revenue- sharing mechanism in awarding an equipment contract and is attributed to the influence of Sir Peter Bonfield, BT's chief executive, who favours such arrangements.
Bonfield, who has been with BT just over a year (Telecom Markets, 282/9), was previously chairman and chief executive of UK computer
manufacturer ICL, which is controlled by Fujitsu.
BT has been in negotiations with the three manufacturers since at least last autumn (Telecom Markets, 302/3). It will use the ADSL capability, allowing the provision of high-speed services over copper wires using digital compression techniques, to launch a fast Internet-access service later this year.
But the ADSL-based network will not be used for more sophisticated services such as video-on-demand and other interactive services. BT is not planning to launch such services until it can use very high speed asymmetrical digital subscriber line (VDSL) technology. It is possible that it will work with the same manufacturers on rolling out a VDSL capability.
<<FinTech Telecom Markets -- 02-27-97, p. 3>> |
