BT Monopoly Blamed For Hampering Broadband Growth
New research has revealed that broadband growth would be boosted if the current regulation was changed to encourage more competition by breaking BT’s monopoly of the market.
The newly created Broadband Industry Group, which comprises Brightview, Cable & Wireless, Centrica, Energis, Freeserve and Tiscali, claims that only greater competition can ensure the potential of broadband.
The group commissioned the Centre For Economics and Business Research (CEBR) to assess the possible economic benefits of broadband. The research revealed that a fully competitive broadband market would increase UK productivity by 2.5% by 2015, which would boost the gross domestic products by £22 billion.
Commenting on the research, Douglas McWilliams, chief executive of the CEBR, said: “We predict that over the next 20 years broadband will have a similar impact on the economy to that of the introduction of electricity from 1890-1920 should current regulation change to encourage more market competition.”
John Pluthero, chief executive of Energis, added: “If we want an innovative, dynamic broadband market delivering huge economic benefit to the UK, genuine wholesale competition is needed. The time for action is now. We look forward to working together with Ofcom and other operators, including BT, to make this happen.”
The group has pledged to continue to campaign and make the case for greater competition in the broadband market.
Mary Turner, chief executive of Tiscali UK, said: “It is widely recognised that availability does not necessarily mean adoption and therefore only competition will provide the innovation in products and pricing to drive mass market uptake”.
Broadband uptake looks set to increase over the coming months and BT recently announced its intention to bring broadband internet access to the whole of the UK by 2005 and called on the Government and the industry to work together to make Broadband Britain a reality (see BT Calls On Government To Back New Broadband Target).
The Broadband Industry Group: bigfuture.org
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