Vtesse News

Hertford. 23rd February 2010

Vtesse Networks, a leading supplier of high speed networking services in the United Kingdom, today welcomed the Business, Innovation and Skills (BIS) Committee's report encouraging a rethink of government policy on broadband internet access.

The committee also supported government action on policy, rather than direct government investment to support broadband penetration.

Vtesse was invited to make a submission to the committee last year. The company has consistently opposed the business rating system and the lack of access for other providers to BT's ducts and poles as key impediments to the government's goal of superfast broadband for all.

Vtesse CEO Aidan Paul said the report would provide momentum to promoting speeds of at least 2mbps for all Britons.

"The Committee's stance on state investment in broadband must be applauded. The report clearly supports the role of private companies in building a truly Digital Britain. Vtesse has supported rural communities with trials to improve broadband in underserved areas and we will continue to engage with government on the best way to provide universal broadband access."

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Notes to editors

1. Vtesse Networks is a leading supplier of high speed services to large organisations. Since last year it has used its expertise in optical networking to address the provision of high speed broadband in areas that have hitherto been unable to obtain acceptable service. It is undertaking trials in Hatt and Saltash in Cornwall with Virgin Media, where it has enabled residents to improve speeds from 500kbps to between 33Mbps and 48Mbps. Vtesse is also undertaking trials in Wiltshire, Hertfordshire and further trials will be announced shortly.

2. Under the current rating system it is estimated that Vtesse pays fibre rates of between 20 and 40 times those paid by BT. Furthermore, BT does not get charged at all for additional fibre used, whereas Vtesse and other operators are charged by the kilometre. This bears particularly harshly on rural areas where the distances to reach settlements are far greater than the equivalent in urban areas.

3. In its trials in Hatt, Vtesse estimated that it would only be economic to deploy the service if it had direct access to duct or fibre from BT at equivalent terms to those that BT supplies itself.

4. The full text of Vtesse's submission to the BIS Committee is available here http://bit.ly/9vxX0j