Cable company Telewest have abandoned their ADSL plans and have withdrawn from the unbundling processing of rolling out ADSL using BT's network stating that it would have cost the company millions to do so.

WorldCom and KPNQwest bailed out earlier in the year also cited the reason for this as the cost this project would have entailed.

This withdrawal will add to the embarrassment of the telecoms regulator OFTEL and the government who are both keen to see unbundled services available to as many operators as possible. The idea is to allow rival operators to place their equipment in BT's local exchanges thus opening up the choice for the customer as to which provider for could approach for broadband connectivity.

Telewest have abandoned their ADSL plans in order to concentrate of the broadband cabling service as they stated that by exploring opportunities for ADSL outside of their franchise area, decided that the investment risks were too high. Analysts estimated that it would have cost Telewest around £800m to roll out ADSL in the areas that were not covered by their cable network.

It is also envisaged that around 40% of the country will never be able to receive ADSL connectivity and even those living in urban areas have to live within a three kilometre radius of the local exchange.

Cable also appears a cheaper option as ntl are now offering a cable modem service for around £19.99 per month whereas ADSL services currently cost around £40 per month.