Met with O2 and BE today for a general chat about the BE broadband network. They are pushing a wholesale offering and are now one of only four Tier 1 broadband wholesalers in the UK – BT, TalkTalk and Cable and Wireless being the others. Reality is I don’t see C&W doing much so probably there are only really three of them.

Telefonica has been backing BE and making not insignificant investments in their network. Their current ADSL2+ offering is competitive. The longer term question for them is really the same as for TalkTalk and that is how to leverage a new (ish) high capacity backbone once ADSL2+ becomes old hat and the world has moved on to greater and faster connectivity.