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December 8, 2008

Ofcom proposals threaten fibre rollout


by David Allen

BT are not too pleased with the telecom regulator Ofcom’s decision to allow a wholesale price increase of just eleven per cent from the 1st April next year.

They say that this increase will hardly cover the costs of inflation and does not allow the company to make a decent profit for providing broadband services.

BT say that if they are held to these price increases, then they are being prevented from making a good enough return on the copper network.

Therefore, when it comes to rolling out the latest fibre technology they are worried about the cost.

Ofcom on the other hand say that pricing and the roll out of a fibre network are separate issues; in fact, there is no ceiling on the rate of return that BT could achieve through the fibre network.

Pricing has been designed with competition in mind and to make sure that there is an incentive still for BT to deliver their services.

Story link: Ofcom proposals threaten fibre rollout


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