BT Proposes Transparent Broadband To Avoid Break-Up
BT unveiled a set of proposals to stimulate the UK’s telecoms industry, claiming that lower wholesale prices, faster broadband services and transparent, highly regulated access to its local network will provide faster and more exciting services to consumers and businesses.
The proposals have been made in response to the latest stage of Ofcom’s Strategic Review and are designed to avoid a forced break-up of BT’s wholesale and consumer businesses by the regulator.
BT’s proposals include the creation of a new Access Services Division to provide what it claims will be “transparent and equal access” to its local network, connecting homes to telephone exchanges; a reduction in the price BT charges for its fully unbundled lines, central to the creation of broadband services and an effort to increase the commercial attractiveness of wholesale line rental.
In return for its increased commitment to open access across its network, BT proposes that Ofcom focus regulation through its new Access Services Division, roll back other regulation on a “progressive and rapid basis”, reward successful investment in next generation networks and allow the company to compete on a “level basis” with other market operators.
Explaining the proposals, BT chief executive Ben Verwaayen said: “The United Kingdom has the opportunity to create the most exciting and innovative telecoms market in the world. Ofcom has recognised this and has initiated a review with the aim of creating a new regulatory framework to make this happen. BT has a critical part to play, and today we are making a set of far-reaching proposals towards that framework.”
He added: “BT cannot deliver the regulatory framework. But we can give an absolute commitment, unanimously supported by the BT Board and its management, that we will play our part once a new regulatory settlement is agreed.”
BT has plans to invest up to £10 billion in the creation of a next generation telecoms network over the next five years, an investment proposal far more than any other European operator. However, the company states that the success of its plans are dependent on the company being assured it can generate appropriate economic returns from its investment.
Increases in broadband speed and reductions in price can only be good news for customers, with an increasing number of companies offering media content via broadband, from BT’s own rich media platform allowing anyone to create and distribute digital content online, to HomeChoice’s digital TV and video on demand system, delivering high-quality TV signals through broadband lines.
BT itself recently confirmed that it would begin offering broadband customers TV and film content via their internet connections, with the company understood to be building on the Freeview platform to give customers a mix of free-to-air channels with the option of purchasing on-demand content on a pay-per-view basis (see BT Boards On-Demand Bandwagon With Broadband Services).
BT: 0207 469 2337 www.btplc.com Ofcom: 020 7981 3040 www.ofcom.org.uk
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