The European Comission has approved the proposal of the
UK telecoms regulator Ofcom to de-regulate the wholesale broadband
market in some parts of the UK, covering around 65% of all UK homes
and businesses.
The rationale for deregulation is that fewer and simpler
regulations will lead to a raised level of competitiveness, and
consequently
lower broadband prices overall, according to Chris Ducker,
senior product manager at ntl:Telewest.
"Ofcom needs to carefully consider whether serious competition
really exists in all regions, not just for consumers, but for local
businesses. Although it is good news that the EC believes
competition has significantly improved, we should ask ourselves:
are we yet at a time when regulation can be removed with complete
peace of mind?"
The Commission supports Ofcom's proposal, which is based on
detailed economic evidence, to deregulate local exchanges with four
or more actual or potential providers serving areas with more than
10,000 homes and businesses.
This is the first time that a national telecoms regulator in the
EU has identified
different broadband markets in different geographic areas
within a country and proposed lifting regulation in those
geographic areas now characterised by effective competition.
"In the more densely populated areas of the UK, consumers have
the choice between different broadband suppliers, which have rolled
out their own infrastructure. For many of these areas ex-ante
regulation is no longer warranted", said Competition Commissioner
Neelie Kroes. "However, at this crucial phase of broadband
development across Europe, it is also important to ensure
consistency across Member States.
The
UK's new broadband minister was unavailable for comment.