Another setback for unbundling as Kingston pulls out

Another one bites the dustKingston Communications becomes the latest telco to pull out of the unbundling process Thursday, delaying its nationwide DSL rollout.

The decision emerged as Kingston announced earnings which fell below analysts' expectations. The telco claims the unbundling process has been an "imperfect process" and will not be fit for purpose for the next year.

"The unbundling process is not proceeding in a manner that has enabled the roll out of residential services this year," says a Kingston spokesman. It is the latest in a line of operators to desert unbundling -- which allows rival telcos to place equipment in BT's exchanges in order to roll out high-speed Internet services. Unbundling is considered key to stimulating competition in the market for high-speed Internet access.

Full story to follow.

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