Local Access Network Technologies

The business model is quite interesting in that it defines a number of roles (see Figure 5.1). The main ones being service providers and network providers. Network providers operate the network and service providers provide service to their customers. There is also a range of equipment suppliers supplying equipment to network providers, service providers and CPE (customer premises equipment) to the customers. The content provider owns the content and strikes an agreement with the service provider that enables the service provider's customers access to the content provider's content. Finally there is Oftel, who ensure that the whole process operates fairly and for the overall benefit of the consumer.
It would be quite simple, apart from the fact that network providers offer a portfolio of products. The reasons for this are twofold: first, by offering a portfolio of products, the potential market place is increased, and second it needs to meet the Oftel requirement for competition. In essence, Oftel's stance is that for consumers to have adequate choice, quality and value for money, there is a need to offer connection at a number of levels. More details of the products offered by BT to meet this requirement are covered in the subsequent section. The implication of this position is that the UK probably has the most open broadband market in the world.
As a network provider, BT offers wholesale products that are aimed either at service providers or at other network...