Oftel Proposals: Risk to smaller ISPs - Gartner Group

Respected industry analyst, Gartner Group, believes Oftel's proposed changes to telecommunication regulation and bandwidth availability could kill off the UK's smaller ISPs.

Senior analyst at Gartner Group, Adam Daum, said: "ISPs will have to play in this new market. A few ISPs, the bigger ones, will get in. Smaller ones are going to get marginalised, simply because they don't have the capital to invest."

Axel Lagerborg, strategic alliance manager for GX Networks, a subsidiary of Internet Technology Group PLC, agrees there is a risk to smaller ISPs but says the onus to survive is on the ISPs themselves. "Today's announcement creates opportunities, but then it's up to ISPs to take the initiative. Some will already have been looking at the US market and learning from that example."

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