NTL is the UK’s largest cable TV group. It claims the deal is the first time a UK ISP and a broadband cable-network operator had worked together to develop a wholesale broadband service. NTL already has over 200,000 broadband customers.
The price is right NTL filed for Chapter 11 bankruptcy protection to the tune of $17 billion last week. The company plans to swap $10.6 billion of bond debt for a controlling equity stake as it works to regain financial health.
Freeserve Broadband will be available over NTL cable; and will be available as part of a bundle with digital TV and telephony from NTL Home. Pricing will be announced later this year. Freeserve currently charges £84.99 for connection and £29.99 per month for its 512kbps service.
Mike Wagner, Managing Director of NTL Business, said: “We’ve worked with Freeserve to develop a wholesale broadband service that benefits both the ISP and the customer surfing at home.”
NTL competitor Telewest already offers its own Blueyonder broadband Internet service, which costs £25 per month (with another service). A three-month, half-price trial of Telewest’s service is available now.