Manx Telecom To Slash Broadband Costs

by Caroline Maxwell, Tax-News.com, London

30 April 2002

Manx Telecom announced on Monday that it has honoured a pledge made in March to reduce the wholesale cost of high speed ADSL internet connections on the Island.

Thw telecommunications company revealed that it would be reviewing its pricing policy following British Telecom's announcement that it would be slashing its wholesale ADSL price in order to allow ISPs to charge end-users lower rates. Yesterday, Manx Telecom announced a 25% reduction in cost, effective from July 1, 2002.

The company's Director of Customer Services, Mike Cook said on Monday that the organisation hopes that the move will encourage more Isle of Man residents to join the 'Broadband Revolution'. However, he admitted that the move was not an especially easy one for the company to make:

'Clearly we are operating in a very different market from the UK where only exchanges serving much larger communities than those on the Island have been equipped with ADSL. This means that BT can benefit from economies of scale which we cannot.'

He went on to add that: 'However, we see the provision of broadband services as part of our commitment to the local community.'

Manx Telecom also revealed this week that it plans to enhance the high speed internet service with the introduction of Fixed IP, which among other facilities, will allow customers to host internet applications, such as web pages, from their own offices.

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