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23|09|08

Action plan for super-fast broadband: promoting choice, competition and investment

Ofcom today published proposals to encourage further investment and competition to deliver super-fast broadband to UK homes and businesses.

Next generation broadband will deliver speeds of up to 100mbps* with services delivered through technology including fibre optic cables rather than copper wires, which currently deliver speeds of up to 8mbps to most homes.

Super-fast broadband will benefit consumers by allowing, for example, different members of a household to download material quickly whilst simultaneously watching films in high-definition TV.

It will also enable multiple business services such as two-way video calls, improved data storage facilities and provide more opportunities for working from home.

In addition it could help to deliver significant social benefits such as telemedicine**, new services f or disabled people and provide possible solutions for broadband “not-spot” areas.

Super-fast broadband: the next steps

Ofcom’s proposals are designed to remove barriers to investment and ensure competition and consumer choice in the super-fast broadband market. At the same time, Ofcom will ensure that measures are in place to protect consumers to ensure continued availability of services and a seamless move from copper to new fibre networks in the future.

The proposals seek to build on the innovation and competition delivered in current generation broadband. To achieve this, Ofcom aims to provide certainty on the future regulatory environment for super-fast broadband by setting out new proposals for consultation in five main areas:

• developing clear standards for wholesale products, thereby allowing communications providers to compete and innovate in the super-fast broadband market;
• allowing pricing freedom where there is effective competition, giving companies the flexibility to price services that reflect investment risk and generate a return on investment;
• understanding the scope for competition based on access to existing telecoms infrastructure, building on the success of local loop unbundling;
• facilitating transition by ensuring the smooth and timely move from traditional copper to fibre networks for both industry and consumers as services take off; and
• communicating the next steps for Ofcom: how we will work with other interested parties including industry, the UK Government and the European Commission.

The consultation also outlines Ofcom’s proposals on the potential role for the public sector in delivering new investment, such as targeting those locations where the market is least likely to deliver new networks.

Separately, Ofcom welcomed the recommendations of the recent Caio Review and the valuable and complementary nature of its work around public policy issues such as planning and streetworks. The Caio report can be found at:

http://www.hm-treasury.gov.uk/independent_reviews/caio_review/caio_review_index.cfm

Ofcom’s plan of action includes continued engagement with stakeholders, building on the Ofcom industry roundtable held on 2 September, to ensure the timely and efficient delivery of services. Ofcom intends to publish a statement on super-fast broadband in spring 2009.

Next generation new build

Ofcom today also published a statement clarifying the regulations covering the installation of fibre optic cable in new property developments. Ofcom’s approach is designed to ensure that consumers benefit from competition in these new, all-fibre networks.

Fibre technology is already being included in new build developments such as Wembley Park in London, Ebbsfleet in Kent, Titanic Quarter in Belfast and MediaCityUK in Salford, Manchester. Ofcom seeks to provide regulatory clarity to investors by applying a flexible approach to existing rules about copper infrastructure to fibre roll-out in new build developments.

Ofcom’s Chief Executive, Ed Richards said: “I am delighted that investment in fibre is already underway and other plans are taking shape. Fibre networks are one of the most exciting developments in communications that the UK has ever seen. Ofcom’s plan of action will encourage further investment while promoting and sustaining competition so we can all benefit.”

The consultation on super-fast broadband includes an interactive executive summary and can be found at:

http://www.ofcom.org.uk/consult/condocs/nga_future_broadband/

Ofcom has also launched a blog on the subject of super-fast broadband which can be found at:

http://comment.ofcom.org.uk/superfastbb/

A glossary which accompanies the consultation can be found at:

http://www.ofcom.org.uk/consult/condocs/nga_future_broadband/glossary/

Ends.

*mbps = megabits per second: the industry standard for measuring online connection speeds

** telemedicine = medical consultation or diagnosis via the internet including video calls, predicted to be used in the future with remote communities or treatment of older or disabled people from their homes

CONTACT

Elizabeth de Winton

Media & Corporate Relations

Ofcom

ofcomnews@ofcom.org.uk

(+44) (0)20 7981 3033

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