Ofcom offers BT free rein on fibre pricing

 

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By Nicole Kobie

Posted on 3 Mar 2009 at 09:46

Ofcom has given BT free rein to decide the wholesale pricing of its proposed fibre network, claiming it wants to spur development of the service.

"Our message today is clear: there are no regulatory barriers in the way of investment in super-fast broadband; we want to promote investment but also ensure that there is fair and effective competition for the future," says Ed Richards, Ofcom's chief executive.

The statement means BT will be able to set its own prices for wholesale access to its future fibre networks, which internet service providers and others buy in order to offer products to consumers and businesses.

BT's chief executive, Ian Livingston, says the Ofcom ruling has given the green light for a £1.5 billion investment in fibre, aimed at delivering 40Mbit/sec broadband to 40% of UK homes in the next three years. Deployments will begin with 15,000 homes in the Muswell Hill region of London.

BT has also confirmed that it will be looking to place 100Mbit/sec connections in new-build developments beginning next year, but that these deployments will be based on "market need".

"The stage is now set for a wide variety of players, of all different shapes and sizes, to do their bit in providing consumers with a choice for superfast and innovative services," he says. "Now it's all about delivery."

Livingston said BT's Openreach wholesaling arm is already signing up providers, and will be able to offer 30,000 customers with fibre service in the next few months. By January, another 500,000 homes will have access to speedy broadband, too.

Aside from the pricing issue, Ofcom says it is also looking into whether private investment is enough to spur super-fast broadband development, or whether further action is required.

The watchdog is also looking into developing industry standards for wholesale products and the use of underground duct infrastructure as an option for network rollouts.