Delivering super-fast broadband in the UK

  • Start: 23 September 2008
  • Status: Statement published
  • End: 02 December 2008

The rollout of super-fast broadband marks one of the most fundamental changes to the UKs telecoms networks. It will bring real benefit to its consumers, business and the economy. Ofcom's overarching aim in super-fast broadband is for consumers and citizens to benefit from timely investment, competition and widespread availability.

Recent announcements of investment and planned investment, including Virgin Medias launch of a 50Mbps service, are very positive for consumers. Consumers will benefit even more from increased choice and wider availability.

The release of spectrum will facilitate the introduction of new technologies and players into the market: it is an important way we can help bring faster broadband to consumers. But fixed networks will play a central role in delivering super-fast broadband for many.

We want to support rapid and widespread investment in superfast broadband and the continued, critical role of competition in meeting consumers needs. This is important because just as with current generation broadband - competition in super-fast broadband services and infrastructure will mean more investment, innovation, differentiation and choice as well as competitive prices for consumers.

Ofcom has a central role to play in enabling both investment and competition in super-fast broadband. To do this, we will:

  • allow wholesale pricing flexibility to enable returns appropriate to the considerable risks of building new networks, but constrained by the market in the interests of customers;
  • ensure that any regulatory pricing allows investors the opportunity to earn a rate of return that genuinely reflects the cost of deployment and the associated level of risk;
  • minimise unnecessary inefficiencies in network design and build as a result of regulatory policies, while continuing to protect the consumer interest;
  • support the use of new, more flexible wholesale services by BT to offer super-fast services to other service providers and consumers at competitive prices; and
  • safeguard the opportunity for further competition based on physical infrastructure, by facilitating fair opportunities for companies to synchronise their investments with BTs deployments, should reasonable demand arise, and encouraging network design that takes future potential competition into account.

To make this approach work, we need to make sure existing regulation is relevant to rapidly changing market circumstances. This is why we are consulting on a related change to the Undertakings agreed by BT with Ofcom in 2005 that will promote efficient investment in superfast broadband networks and services.

This statement focuses largely on plans for private sector led investment. It prepares the ground to ensure the regulatory environment promotes private sector investment and competition to bring millions of UK consumers into a new era of super-fast broadband.

But this will not be the whole story. We need to work closely with all stakeholders to understand the likely scope of private sector investment and consider whether there is a need for further action to bring the benefits of super-fast broadband to a wider group of UK consumers, citizens and businesses.


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Responses

Responder name Type
acod.pdf (PDF File, 23.1 KB) Organisation
AlcatelLucent.pdf (PDF File, 44.3 KB) Organisation
Arqiva.pdf (PDF File, 25.3 KB) Organisation
bt.pdf (PDF File, 169.7 KB) Organisation
CableWireless.pdf (PDF File, 38.2 KB) Organisation
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