Euro Regulations Stifle Broadband Growth

European regulations surrounding the unbundling of local looped telephone networks is hampering the development of next-generation broadband networks, according to the Fibre-to-the-home (FTTH) Council of Europe.

The FTTH claims that recent uncertainty over Euro-regulations has discouraged investment in high-speed networks, although representatives from telecoms regulatory bodies in the EC, UK, France and the Netherlands claimed last month that there is no need for further change to the current proposals.

The European Information Society is currently following its own roadmap for high-speed internet development, dubbed i2010, which is designed to create a single European information economy based on fast and affordable connections of over 10mbps. The fastest speed currently available to domestic users in the UK is 8mbps.

Summing up the problem, Meni Styliadou, chair of the FTTH Council’s regulatory affairs committee, said: “Would you invest billions in a long-term, fibre-optic infrastructure when, as the framework stands, your new assets could be un-bundled to competitors?”

Earlier this year British Telecom was forced to promise several new working practices to stimulate the UK’s telecoms industry, including lower wholesale prices, faster broadband services and transparent, regulated access to its local network in order to avoid a forced break-up of its wholesale and consumer businesses by industry regulator, ofcom (see BT Proposes Transparent Broadband To Avoid Break-Up).

FTTH Council: www.europeftthcouncil.com