BT Infinity 40 MBPS highspeed broadband in the UK

British Telecom or BT, the UK’s leading fixed line operator, has launched an aggressive pricing strategy for its high speed broadband internet which offers 40 MBPS speeds. The aggressive pricing strategy is meant at capturing more customers from its main rivals’ hands.

BT highspeed broadband internet users will have to pay EUR 20 per month only to use their highspeed network based on optical fibre. The EUR 20 per month rate is actually EUR 8 cheaper than the service offered by its main rival, Virgin Media.

Most people in the UK use 8MB speed connections which is way below compared to many other developed European countries. BT is planning to respond to this problem by spending EUR 1.5bn on its new fire optic network.

BT hopes to complete the laying out of the optic fibre network by 2012, by the time of Olympics at London. The network will reach 10million homes by that time.

John Petter, an executive at BT’s retail unit, said, “The name of the game for BT is getting customers to come back to BT for all their services.” He also said the pricing of the superfast broadband service would ensure it became a mass-market phenomenon.

BT controls only 29% of the total broadband market in the UK, which is very low compared to its other competitors in Europe.

The superfast broadband service from BT, called BT Infinity, will start on 25 January.

Virgin, BT’s mail rival, has hit out at BT saying the company is misleading customers. BT Infinity runs at 40Mb per second while Virgin Media’s is 50Mb per second.