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04 March 2009 - OFCOM Speak - Delivering superfast broadband in the UK

OFCOM have released a statement on "Delivering super-fast broadband in the UK" which focuses on the regulatory regime that will apply to BT as they "currently hold a position of significant market power in relation to the relevant markets at present".

Specifically it addresses BT's Fibre to the Cabinet (FTTC) plans.

"Ofcom has a central role to play in enabling both investment and competition in super-fast broadband. To do this, we will:
   * allow wholesale pricing flexibility to enable returns appropriate to the considerable risks of building new networks, but constrained by the market in the interests of customers;
   * ensure that any regulatory pricing allows investors the opportunity to earn a rate of return that genuinely reflects the cost of deployment and the associated level of risk;
   * minimise unnecessary inefficiencies in network design and build as a result of regulatory policies, while continuing to protect the consumer interest;
   * support the use of new, more flexible wholesale services by BT to offer super-fast services to other service providers and consumers at competitive prices; and
   * safeguard the opportunity for further competition based on physical infrastructure, by facilitating fair opportunities for companies to synchronise their investments with BT’s deployments, should reasonable demand arise, and encouraging network design that takes future potential competition into account."

For full details see http://www.ofcom.org.uk/consult/condocs/nga_future_broadband/statement/

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