ADSL, or asynchronous digital subscriber line, delivers broadband over telephone wires. BT sells the service direct to end-users through its BT Openworld brand. It also has to sell the service wholesale to other ISPs that re-brand the service and compete with BT Openworld. ADSL services compete with broadband from cable companies such as NTL and Telewest.
Verwaayen also announced that BT had made "a series of technological breakthroughs" that would bring ADSL within potential reach of 90% of UK homes and small businesses. Currently, the figure is 67%, dictated mainly by the number of telephone exchanges that have been upgraded to cope with ADSL and the distance from each exchange over which the services will operate.
BT plans to upgrade 600 more exchanges, subject to demand. It has also extended the reach of ADSL broadband to up to 6kms from an exchange – meaning that up to 98% of people connected to an ADSL enabled exchange should be able to access the technology.
The monthly fee for the wholesale consumer product will be reduced by up to £2 and there will be larger savings on BT's wholesale products that are aimed at service providers who serve small businesses. Prices for the 500kbs, 1Mbs and 2Mbs products will be slashed by over 50%.
Verwaayen added that the speed of BT's progress is generating economies of scale that will help BT continue to reduce costs and progress beyond the one million figure.