Ofcomis consulting over how next
generation networks - including fibre - should be regulated, to
protect supplier investments and ensure end-users can benefit from
a competitive market.
Ofcom says end-users have benefited from wider broadband access,
faster speeds and cheaper prices under the current regulatory
regime, but it wants to make sure a similar formula is in place as
suppliers build out next generation networks.
BT is currently building its £10bn
21st Century Network, which is IP-based to support more
flexible and a wider range of services to businesses and consumers,
and Virgin Media is busy upgrading its cable network, which serves
around 50% of the population.
Ofcom says these and many other suppliers may consider wider
fibre deployments to keep up with the faster broadband access
expectations of ecommerce firms and consumers, and that the
regulatory regime for such investments now had to be modified to
take account of them.
Competition minister Stephen Timms last week called for the
industry, regulators and government to come together to plan a
roadmap for next generation broadband services.