An investment of some £1.5bn in the UK telecoms market that may bring better broadband services to some 40% of UK households was bound to get the attention of the industry regulator. Ed Richards, Chief Executive of Ofcom has released a response:
"This is a clear sign that the UK market is moving in the right direction, with a growing number of plans to deliver super-fast broadband services to consumers.
These new networks will be a critical part of the UK’s infrastructure and will change our experience of communications. They will support and deliver innovative applications and services as well as helping create new opportunities for businesses of all kinds."Ed Richards (Chief Executive), Ofcom
A key point made by BT is that these fibre based products will be available at a wholesale level, which will increase the pressure on Virgin Media to provide a similar service. If Virgin Media continues to insist its fibre/coax network is only sold at the retail level by itself, then it may find its market share shrinking.
While the vast majority of households likely to benefit from the fibre to the cabinet or premises roll-out by BT will be in the major UK cities, Ian Livingstone told Openreach employees that BT is willing to work with Regional Development Agencies and other bodies to use this roll-out to resolve the remaining broadband not-spots. So for those who have been working hard to try and get Openreach to do things like install thicker copper or re-route cables so a village or outlying estate can get broadband, this latest investment news may mean it is worth starting your campaign engines again.