BT wants access to Virgin's cable network

 

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By Barry Collins

Posted on 15 Jul 2008 at 13:26

BT says it wants access to Virgin Media's cable network if rival ISPs are to be given access to its newly-announced fibre.

BT today announced plans for a £1.5 billion fibre rollout, but stipulated that the investment depends on "a supportive and enduring regulatory environment".

Comment: BT puts gun to Ofcom's head

One such concession appears to be access to rivals' networks. When asked directly whether BT would want to sell services on Virgin's cable network, in the same way Virgin currently buys wholesale access from BT, a spokesman replied: "We think, as a principle, that would be worth extending. It's about applying that principle across the board."

Virgin Media was unable to comment on BT's demands at the time of publication.

BT has made it clear that it's prepared to grant competitors access to its fibre network, which should reach 10 million homes by 2012. However, the BT spokesman says the company must be "allowed to make a reasonable return on that investment."

He wouldn't discuss specific rates, but said that BT was "looking to talk with [regulator] Ofcom over the coming weeks about how that could work."

"Unlike Deutsche Telecom [in Germany] we're keen to open up the network and wholesale it," he added.

Ofcom chief executive Ed Richards has already welcomed BT's announcement. "Firstly, given the potential consumer benefits, regulation needs to provide the right incentives for operators to invest, recognising the inherently risky nature of these investments," he said.

"Secondly, we want to continue to promote a vibrant competitive environment as we enter the next generation of communications services.

"Thirdly, 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."

Full speed ahead?

BT's fibre rollout will still leave large parts of the country without access, although BT is keen to stress it's not only focusing on the bigger cities.

Even in fibred areas, few will see the very top speeds. BT admits it's predominantly deploying fibre-to-the-cabinet (FTTC) which offers maximum speeds of 40Mb/sec, as opposed to the 100Mb/sec potential of fibre-to-the-premises, for cost reasons. "It [FTTC] is more economically possible," he said. "If there's sufficient demand for FTTP, that can change."