Ofcom outlines investment plan for super-fast broadband

Ofcom Chief Executive Ed Richards today set out a pro-investment framework for next generation, super-fast broadband networks and invited industry leaders to commit with Ofcom to help implement its rollout across Britain.

Speaking at industry trade body Intellect’s conference in London this morning, Ed Richards said: “Our position is clear. Ofcom favours a regulatory environment for the next generation of networks and access that both allows and encourages operators to make risky investments, to innovate for the benefit of consumers and, if the risks pay off, for the benefit of their shareholders too.

We are very clear that if operators are going to make investments in new infrastructure, investment that is inherently more risky than developing the existing infrastructure, then they need to know that the regulatory framework will allow them to make and keep a rate of return that is commensurate with the risks they are taking. And they need a time horizon that gives them a degree of assurance for a realistic period in the future; that they know for example that the regulator will not suddenly change the rules of the game to reduce the returns just as the rewards for the risk start to flow in.

We want investment in a competitive environment. It is encouraging that cable is now talking about seriously rolling out their next generation high bandwidth product at the end of the summer. The emerging success and rapid take-up of mobile broadband will provide a further spur to the fixed line operators to upgrade to next generation high bandwidth products to differentiate themselves competitively to consumers.

He added: “Over the last few weeks there has been a step change in the level of interest and engagement on Next Generation Access issues from a range of companies and organisations.

This is excellent news and a development that I very much welcome. Now we have meaningful engagement, the time is right to change gear in our determination to address regulatory and other issues of practical implementation.

We need to bring industry together to debate and resolve some critical issues. Ofcom will provide an important forum for debating and resolving these key issues with industry.

That is why I have today written to leading CEOs across the communications sector to initiate a concerted dialogue on the key issues. Ofcom will host the first of a series of working sessions focused on practical action and resolution of areas of uncertainty as soon as possible.”

Alongside these meetings, Ofcom aims to set out details of the regulatory framework for superfast broadband in September.

The full text of the speech will be available at http://www.ofcom.org.uk/media/speeches/2008/

Ofcom outlines investment plan for super-fast broadband

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