Ofcom hassplit the national market for broadbandinto four main areas and defined them according to the
level of competition that exists between broadband providers. These
are:
* Hull - those areas covered by exchanges where KCOM is the only
operator. This market covers 0.7% of UK premises.
* Market 1 - those areas covered by exchanges where BT is the
only wholesale operator. This market covers 19.2% of UK
premises.
* Market 2 - those areas covered by exchanges where there are
two or three wholesale operators. This market covers 15.7% of UK
premises.
* Market 3 - those areas covered by exchanges where there are
four or more wholesale operators. This market covers 64.4% of UK
premises.
Ofcom has found that KCOM's position in the Hull market gives it
a dominant market position. Ofcom reached a similar conclusion in
relation to BT's position in Market 1 and Market 2. Accordingly
Ofcom will continue to protect consumers by keeping existing rules
that are designed to promote retail competition in these
markets.
These rules require KCOM and BT to open up their networks to
other providers on a fair and equivalent basis and provide a
wholesale product on which retail services can be built.
Ofcom believes the supply of wholesale broadband services in
Market 3 is
increasingly competitive and that no organisation enjoys
significant market power there. Consumers have sufficient choice
and are therefore protected by competition.
For this reason Ofcom proposes to remove regulation
imposed on BT in this market and received approval from the
EU.