Ofcom backs off on broadband regulation

 

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By Barry Collins

Posted on 14 Feb 2008 at 16:38

Ofcom is to stop regulating BT in the majority of the country's broadband exchanges because "strong competition is now a reality".

The regulator has won approval from the EU to withdraw its regulatory obligations in exchanges where there are four or more wholesale broadband providers.

Under Ofcom's proposals, BT will no longer be obliged to offer wholesale access to its competitors in those exchanges. This means that BT can negotiate its own price when giving ISPs access to its network, rather than having them pre-determined by Ofcom.

Ofcom says it will make a final decision on how to regulate the market in the Spring. "Ofcom's proposals include the removal of regulatory obligations in areas of the country where strong competition is now a reality, in keeping with its commitment to regulate only where it is necessary," an Ofcom statement reads. "The area covered by this proposed de-regulation accounts for approximately 65% of UK premises."

BT has, unsurprisingly, backed the move. "This is very welcome news from the European Commission," says CEO Ben Verwaayen. "Its support for Ofcom's proposals is a step in the right direction. Britain has one of the most competitive markets in the world with customers benefiting from innovation, great choice and low prices".