Ofcom regulations set to encourage BT’s high speed broadband investment

16 Feb 2009

According to the Financial Times, the likelihood of UK incumbent BT moving forward with plans to roll out a GBP1.5 billion (USD2.15 billion) high speed broadband network have greatly increased following comments by the country’s telecoms regulator Ofcom stating it would not prevent the operator from securing an adequate return on any investment it makes. The regulator’s chief executive, Ed Richards, has reportedly claimed that the planned regulatory regime for the new infrastructure would not be an ‘obstacle’, with Ofcom expected to publish the new framework in March 2009. Having unveiled plans for the high speed network in July 2008, BT has long claimed that its plans are conditional on its ability to ensure a sufficient return, with plans to charge rivals for using the network at the centre of its investment case. Mr Richards has indicated that the regulations may give BT considerable ‘pricing freedom’ with regards to wholesale charges.

United Kingdom, BT Group (incl. Openreach), Ofcom