A group of internet service providers (ISPs) have got together to form a co-operative. They aim to improve their collective purchasing power and better compete in an increasingly tough market. Under the umbrella of the United Kingdom Internet Forum (UKIF), which represents 70 small and medium-sized ISPs, the co-op will be better placed to pool orders for IT hardware and wholesale broadband, thus earning better discounts from suppliers. So far 17 ISPs have signed up for the scheme.
In a related move, UKIF is also launching an Enterprise Forum aimed at “helping companies across the UK develop their businesses [while] advancing the growth of broadband in the regions". At present 17 large companies, including BT and NTL, have exclusive rights to bid for public sector contracts to supply broadband. Smaller ISPs, such as UKIF members, are excluded. It is hoped that the group will be able to tap into a niche market by supplying broadband in less commercially viable regions of the UK, which have been overlooked by the larger suppliers.
The Register reported last August that many small ISPs were facing ruin after Ofcom rulings which were seen as increasing the monopoly of the larger suppliers. By teaming up, they will hopefully survive to make the British broadband market more competitive and fairer for businesses and consumers.