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14|02|08

EU decision on wholesale broadband access

Ofcom today welcomed a decision from the EU Commission to endorse Ofcom's proposed approach to regulation of the wholesale broadband access market in the UK. In the absence of objections from the Commission, Ofcom expects to publish a statement on the issue in the spring, following the completion of its consultation process on the proposals.

The Commission confirmed that Ofcom's proposals for regulating this sector are consistent with the rules set out in the EU framework - and that the decision to tailor regulation to local competitive conditions through the identification of sub-national markets is justified.

In November 2007 Ofcom issued a consultation document which set out proposals for effective regulation. In that document Ofcom recognised that competition in the supply of wholesale broadband access services has matured at different rates across the UK and has therefore identified four distinct sub-national markets. Ofcom proposes to tailor regulation in these sub-national markets according to the level of competition in each.

Ofcom's proposals include the removal of regulatory obligations in areas of the country where strong competition is now a reality, in keeping with its commitment to regulate only where it is necessary. The area covered by this proposed de-regulation accounts for approximately 65% of UK premises.

The consultation period closes today and Ofcom will now begin a period of review whilst it considers representations made from all interested parties. Ofcom expects to issue a statement detailing its final proposals in the spring.

The consultation can be found at: http://www.ofcom.org.uk/media/news/2007/11/nr_20071115

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