BT's ADSL trials barked up wrong tree

Telco's focus on the consumer market falls flat and gives rivals an advantage.

BT has been trialling Asymmetric Digital Subscriber Line (ADSL)s an advantage. technology with the wrong users, according to analysts.

Following its unsatisfactory test results, the telecoms giant has suspended its trials.

BT spent two years focusing ADSL on the consumer market for high-bandwidth services into the home, but analysts believe it is the business market that stands to benefit most from the technology.

"BT's eyes have not been on the ball. ADSL is an access technology to get SMEs connected to the network at lower costs," said Robin Duke-Woolley, senior consultant at Schema. "In trying to find whether it can make a living from services such as video-on-demand, BT may well have found that the demand is not there for ADSL services in the residential market - it is in the business market."

BT's approach is giving competitors such as Edge Technologies a lead in the market. "BT has halted its London trials because it has decided that this is not the way to do it," said Chris Miles, business development manager at Edge. "It has spent huge amounts on trials, but they didn't work."

BT recently admitted it would delay any decision to roll out an ADSL service by three months, until July. The telco blamed communication problems with the trial customers, which meant they could not receive the service.