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UK Wireless Operators Should Offer DSL, Says Analysys Report

1:30 am on April 12, 2007 | Category: Business, Internet, Telecom Services, Wireless

Pure-play wireless carriers in the UK should be able to quickly recoup the investment necessary to deploy their own fixed-line DSL services, and would be wise to begin the process as soon as possible, according to a new report from research firm, Analysys.

“DSL services can generate nine times the ARPU earned by many mobile operators today from mobile data services. However, the challenge is to offer such services profitably,” explained Analysys researcher, Dr. Mark Heath.

The report says that there is a strong case for mobile operators to launch their own DSL services, due to the low profitability of reselling DSL, and the current impracticality of mobile broadband technologies for high-volume internet users.

Analysys says that a major wireless carrier like Vodafone UK, which currently resells BT’s fixed broadband service, would be better off to launch their own competitive offerings, via the local loop unbundling (LLUB) process.

“If fixed broadband services are to be profitable and to make a noticeable difference to mobile operators? revenue, a typical mobile operator must encourage at least 10% to 20% of its customer base to subscribe to its DSL services,” noted Dr Alastair Brydon, who co-authored of the Analysys report. “While there are risks involved, investment in LLUB could pay back in less than three years.”

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