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Companies scrap plans for fast net services

Five telecommunications companies have called a halt to plans to offer fast internet access services because of the prohibitive costs involved.

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LONDON (Brand Republic) - Five telecommunications companies have called a halt to plans to offer fast internet access services because of the prohibitive costs involved.

Telewest, NTL, KPNQwest, Global Crossing and Worldcom have all scrapped plans to roll out nationwide high-speed internet services over ADSL (asymmetric digital subscriber line).

The news comes soon after telecoms watchdog Oftel accused BT of dragging its feet over the unbundling of its local loop, which will give rival companies access to BT exchanges and allow them to provide ADSL services.

Two other companies, Energis and Thus, are also reported to be delaying ADSL plans until they have a guarantee from Oftel that the price to use a BT exchange will be capped.

An Oftel spokesman said in a BBC News Online report that the withdrawal of the five major companies will not affect consumers, because there are many more companies planning to offer ADSL services.



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