AOL to invest $211m in LLU

By Derek Sooman on January 22, 2006, 6:46 AM
AOL is investing millions in local-loop unbundling (LLU), a move designed to help it compete in a higher speed, service-orientated broadband market. The company will be spending 50m on the first phase of its LLU programme, which will allow AOL to take direct control of a customer's telephone line and sell their own services.

The investment will be made in 'Local Loop Unbundling' (LLU), which is the process that allows telecoms and Internet companies to replace BT as the provider of services over the telephone line from the local exchange to the phone socket in the home, known as the 'local loop'. This will enable AOL to deliver Internet, telephony and other broadband related services, such as Video on demand, television over broadband and advanced gaming services, directly to these consumers.




User Comments: 10

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paulwuzhere said:
*sigh* Poor AOL trying to keep up with Cable. They need to cut their prices a bit.
DragonMaster said:
As long as it's not as pricey than cable, the cost is not too high. Here, cable is 55$ per month if you don't have cable TV while there are DSL ISPs as low as 30$. There is about no competition because the cable co. owning the cabling is also the ISP. (There are a few other ISPs offering cable tho.)
MonkeyMan said:
Well, I commend AOL for at least trying to keep up with the competition. At least they are making a start. They still have a long way to go, but with the investment in LLU, it should make their service a little better. Go AOL!!!!!!!!
cyrax said:
Lets hope the subscription prices take a dive. If they come to my country, they won't qualify to be any better than the present company whose prices are excessive.
gamingmage said:
AOL needs to cut prices, and make their services much better. Lets hope this will be a step in the right direction for AOL.
champmanfan said:
I would prefer AOL over BT anyday and I would assume that you would get Broadband enabled on your line faster than BT just putting their customers first. My ADSL line is limited to 1MB speeds so i'm on AOL's lowest cost service 'Silver' that is 1MB instead of my prefered 'Gold'which is 2Mb.It would be even better if I paid AOL for line rental, then I would be better persuaded to sign up additional services such as cable rather than funding the expensive BSkyB satellite service. Here's hoping a better deal all round in future for everyone in the UK ;)
exscind said:
[b]Originally posted by gamingmage:[/b][quote]AOL needs to cut prices, and make their services much better. Lets hope this will be a step in the right direction for AOL.[/quote]No kidding. I saw AOL's price plan for their super fabulous unlimited Dial-Up Service Plan, which is $23.90 per month. I couldn't believe the price myself, so I called AOL just for fun. Yup... $23.90 per month for unlimited dial-up service. Link here for those who refuse to believe me (I'd doubt myself too if I didn't double check with AOL):[url]http://site.aol.com/price_plans/index.adp[/url]When you charge someone $23.90 per month for dial-up, your company is bad and I promptly refuse to listen to anything after. This LLU investment may improve AOL; but until AOL improves itself internally in terms of pricing plans and a choice to not have 20 bloatwares included with the AOL browser, no investment in technology will help.
spike said:
Screw AOL. I congratulate them on taking this decision, but I still hate their product (if you can call it that) with a vengeance.However...ADSL is THE major platform/type of broadband provision in the UK. With such an investment, AOL are likely going to make a substantial contribution to the process of enabling LLU on exchanges accross the country, as per customer demand. LLU enabled exchanges are able to provide ADSL speeds of up to 24 meg (depending on the technology used), instead of the 8 meg that BT will be able to provide on non-llu exchanges.Once an exchange is LLU enabled, nomatter who enabled it, we are going to see the option of faster broadband speeds (both up and down streams), and will no doubt see a variety of possible providers on each exchange. I rather suspect this might turn out to be a bit of a double edged sword for AOL, depending on which method of unbundling of the exchange they use...[quote]http://www.ofcom.org.uk/static/archive/oftel/pu
lications/local_loop/llufacts/2003/llufacts0103.htmLoop Unbundling (EC/2887/2000) came into force on 2 January 2001. The Regulation requires incumbent operators throughout Europe to offer unbundled access to their local loops on reasonable request. Condition 83 sits alongside the Regulation and provides the detail, which may be needed to ensure that the Regulation can be applied effectively in the UK. The text of the Regulation can be found at: [url]http://europa.eu.int/eur-lex/en/lif/dat/2000/en_300R288
.html[/url]As well as mandating local loop unbundling, the Regulation also requires the incumbents to offer shared access and sub-loop unbundling (described in Annex A). Both BT and Kingston have published reference offers, as required under the Regulation.[/quote]So, It's good news for everyone then.
nathanskywalker said:
lol, yes Aol does seem to be just a bit behind.... of course AIM is alright. And yes $23.00+ for dial-up, yeah that says something.
mentaljedi said:
Dial-up is so rubbish it should come free with the line!
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