Profitability for BT's planned£1.5bn high-speed fibre broadband networkis assured, says telecoms regulator Ofcom.
BT has said it will invest in the proposed fibre network only if
it can make an adequate return by selling capacity to other
telecoms operators.
Ed Richards, chief executive of Ofcom, has given the assurance
that a new regulatory framework to be published next month will not
be a barrier to this kind of investment, the Financial Times
reports.
According to Richards, the coming regulations will enable
companies to make a return which justifies the investment they are
making.
BT stakeholders are looking for new revenue generating
opportunities after the company reported an
81% drop in pre-tax profits for the third quarter.
The company blamed poor cost control in its Global Services
division. The division saw sales rise 15% to £2.2bn but an
operating loss of £501m.