BT can build its
£1.5bn super-high-speed fibre-based broadband network for UK
internet users, following Ofcom's decision to open up the
high-speed broadband market.
Ed Richards, Ofcom chief executive, said, "Super-fast broadband
represents one of the most important developments in modern
communications for many decades. It will deliver significant
benefits to consumers and businesses with the prospect of new
digital services delivered over the internet at high speed. Our
message today is clear: there are no regulatory barriers in the way
of investment in super-fast broadband we want to promote investment
but also ensure that there is fair and effective competition for
the future."
Ofcom said suppliers would have pricing freedom. "Communication
providers such as BT will have the freedom to price wholesale
super-fast broadband products themselves without any regulatory
intervention.
"This will allow investors to make an appropriate return on
their investment, based on the risk they are taking but pricing at
a level that the market will bear, given the ready availability of
alternative broadband services."
The regulator said it would ensure that any regulatory pricing
allows investors the opportunity to earn a rate of return that
genuinely reflects the cost of deployment and the associated level
of risk
Ofcom expected that super-fast broadband in the UK would be
built by laying fibre to existing telecoms street cabinets, which
would provide downstream bandwidths of 40mbps and beyond and 15mbps
upstream. This compares to downstream speeds of 8mbps and 24mbps
for ADSL and ADSL2+ today, Ofcom said.
Ofcom said super-fast broadband could also be achieved by
upgrading current cable networks to deliver speeds up to and beyond
50mbps downstream or more, against their previous maximum speed of
20mbps. The third option is to deploy fixed or mobile wireless
services using new technologies which may be able to deliver
headline speeds in excess of 50mbps downstream and 20mbps
upstream.
Ofcom also said it was also keen to explore how BT's duct
network could be used to increase network bandwidth. Ofcom said
there was significant unoccupied space in individual ducts, that
carry broadband cables.
The regulator has published a
paper on the
future of broadband.
Studies have shown that fast broadband is a key driver to
economic growth.