As H2O Networks fibre-optic broadband service continues to progress in Bournemouth, with the first 30 homes due to be connected by March 2009, there are concerns that the introduction of the superfast broadband service will cause confusion amongst consumers in the UK. As we have covered in one of our earlier posts, the H2O Networks project is costing around £30 million, with funding to be provided by H2O Networks, and the company is likely to demand a rollout of the service as quickly as possible once the Bournemouth project has been completed.
The expected press coverage of this major step forward in the UK broadband industry is sure to catch the eye of consumers where 100 Mbps broadband speeds have until now been only a dream. However, at a cost of around £400 to connect to the service it would appear that H2O Networks is attempting to take a slice of the commercial business market. So where does this leave UK consumers?
Even though connection is free for those in the Bournemouth who have signed up to the trial, the company will need to create a significant income stream in the future to repay the £30 million investment and create a return going forward. There is concern that UK consumers may well hold back from signing-up to the likes of Virgin Media’s forthcoming 50 Mbps broadband service and a similar BT project, both of which are due to come on line over the next 12 months, in the forlorn hope that 100 Mbps broadband speeds will be available throughout the UK in the short term.