BT plans £1.5b super broadband network

Stuart Corner
Wednesday, 16 July 2008 08:44

Opinion and Analysis

BT said: "A supportive and enduring regulatory environment is essential if this investment is to take place. Given this, BT will be discussing with Ofcom the conditions that would be necessary to enable this programme to progress. These include removing current barriers to investment and making sure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders." Sound familiar?

However, one very significant difference between the UK and Australia is that BT is not the only organisation planning a new high-speed broadband network. Ed Richards, head of the UK regulator Ofcom welcomed the BT announcement by saying "This is a clear sign that the UK market is moving in the right direction, with a growing number of plans to deliver super-fast broadband services to consumers.  These new networks will be a critical part of the UK's infrastructure and will change our experience of communications. They will support and deliver innovative applications and services as well as helping create new opportunities for businesses of all kinds."

BT contends that "all next generation networks in the UK should be open as this approach will boost competition and consumers and businesses will benefit." However this could likely mean that cellular network operators should be obliged not only to accommodate mobile virtual network operators but to do with operational separation between network arm and service provider arm as BT is required to do for its fixed network BT does not on a cellular network.

Ricahrds also sought to garner for Ofcom some kudos from the BT announcement saying "Industry cannot achieve a move as significant as the launch of super-fast broadband on its own. Ofcom has led the way in prompting a debate about the regulatory environment for super-fast broadband deployment. With this announcement industry will need further regulatory detail and that is exactly what Ofcom will provide.

"We are already working closely with communications providers, and our wider stakeholders, to ensure there is a concerted dialogue on the regulatory environment to support investment and competition. Building on these discussions and our policy work over the last two years, we will be publishing further detailed proposals for the regulatory framework for Next Generation Access networks in September."
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