HULL telecoms firm KC is facing competition from a new digital network being established in the city.
Priory Park-based company MS3 Communications have commissioned engineers to start laying a new network of fibre optic cables, which will reach 12,000 homes in Hull when it goes live on June 1.
The company then plans to extend this to 25,000 homes after another eight to ten weeks.
Until now all telephone and internet connections in Hull have had to go through KC's copper cabling system, in packages offered by KC or other providers using their network.
The new digital network will offer a range of services entirely independent of KC.
MS3 Communications, a company set up by Hull-based internet provider MediaSat3 Ltd, has announced an initial investment of £3.6 million.
This will see more than 30 miles of cable installed running from Barton-upon-Humber across the river to Priory Park, then north to Cottingham, and east to the city centre.
Once the first phase is up and running MS3 Communications will look to extend the network to cover all of East Yorkshire within two years.
Tony Hales, managing director of MS3 Communications, said: "I really do think this will change the city.
"This will bring future investment here and more jobs.
"The city needs to be able to compete on the same level as the rest of the country and telecommunications and the internet are becoming more important.
"We think the market is ready for competition, it will be good for local businesses and it will be good for KC."
The Mail understands that KC has, for some months, been developing a multi-million pound plan to replace its network of copper cables with fibre-optics direct to people's homes.
The fibre-optic cables would increase the broadband capacity and speed offered by KC.
It is thought that KC expects to be able to offer broadband ten times faster in the future.
At the moment the average top speed is ten megabytes per second. In future it could be 100 megabytes.
The plan requires the approval of the main board of KC's parent company, the KCom Group. It's thought KC may make an announcement this summer.
KC chief executive Kevin Walsh said: "We're committed to developing Karoo as Britain's best broadband service and will continue to invest in our network to achieve this."
MS3 Communications has six internet providers lined up to take advantage of its "next-generation" cables, but is not willing to reveal names.
The company claims its fibre-optic cables will provide a network through which internet providers can offer cheaper and faster broadband services than those currently provided by KC.
Mike Harlington, network operations director at MS3 Communications, said: "Businesses will be able to pay five times less then they are currently stuck with."
Sean Royce, KC's commercial and finance director, said: "During the past 18 months we've been in discussions with MediaSat3 about their plans to offer an alternative communications infrastructure in Hull."
He said the company have also been in talks with other internet providers who wish to sell their services using the KC'S network.
Taken from http://www.thisishullandeastriding.co.uk/news/KC-competitor-set-network/article-3413167-detail/article.html
