Ah so if there's quite a few leased lines being rented here, supplying residential fibre-optic broadband would then swallow those and they might be worse off unless they had a lot of new customers here.
Possibly. It's not quite as simple as comparing speeds. A 40Mb/s leased line is likely to be better on balance than a 70/20 FTTC connection (lower latency, SLA and probably symmetric). But yes high-speed broadband can impact leased line sales and that means less money for BT.
What about Virgin competing with this though or do they provide leased lines for businesses aswell?
They are in more or less the same position although their costs are likely to be higher. BT 'only' has to install a handful of cabinets which prolly costs less than £100k. VM would have to lay cables in the ground as well install its version of cabinets so probably looking at five, maybe ten times that cost.
I'm also not sure if VM's business service is delivered over coax like their residential service or FTTP. I'm sure I've heard that it can provide FTTP.
Edited by Andrue (Tue 06-Sep-16 15:16:50)