Ofcom, the UK telecom regulator, has published a report Delivering Super-Fast Broadband in the UK that outlines its policies for fiber deployment. Ofcom stated that it will:
- allow wholesale pricing flexibility to enable returns appropriate to the considerable risks of building new networks, but constrained by the market in the interests of customers
- 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
- minimise unnecessary inefficiencies in network design and build as a result of regulatory policies, while continuing to protect the consumer interest
- support the use of new, more flexible wholesale services by BT to offer super-fast services to other service providers and consumers at competitive prices
- safeguard the opportunity for further competition based on physical infrastructure, by facilitating fair opportunities for companies to synchronise their investments with BT’s deployments, should reasonable demand arise, and encouraging network design that takes future potential competition into account.
Ofcom will work with BT to resolve its concerns about generating a return from its intended investment in fiber to the home. It will be interesting to see how it maintains a balance through this process.
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