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July 8, 2008

Ofcom offers incentives for BT fibre rollout

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by Jan Harris

Communications regulator, Ofcom, seems to have suggested that it would allow BT to capitalise on an investment in a next generation broadband network.

BT has held off investing in fibre-to-the-home, because existing regulations would require it to give competitors equal access to the network.

However, in a speech to Intellect, an association representing IT, telecommunications and electronics industries in the UK, Ofcom’s Ed Richards said that Ofcom favours regulations that would allow operators to make risky investments, and keep returns commensurate with the risks taken.

European regulations would prevent Ofcom giving BT free rein to run a national fibre network as a monopoly, but Ofcom could ensure that BT would be able to gain a return on an investment in fibre for the long-term.

The deployment of fibre-to-the-home could cost up to £15bn.

Story link: Ofcom offers incentives for BT fibre rollout


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