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Fibre broadband could
offer speeds of up to 100Mb
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Call for fibre broadband investment
Garnet Roach garnet@consumerchoices.co.uk
Calling for more investment in next generation broadband, Ofcom has unveiled a new determination to ensure competition and return on investments in fibre optic broadband (07-07-08).
Ed Richards, chief executive of the telecoms regulator, said that he is determined to create a business environment that will allow operators to “make and keep a rate of return that is commensurate with the risks they are taking”.
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"Alongside mobile broadband, [fibre broadband] will, in time, have a similar impact as the first generation of broadband"
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Developing a fibre optic network to cover 80 per cent of the UK is estimated to cost between £10 billion and £15 billion - much of which was expected to be covered by investment from BT (www.BT.com).
However, BT has voiced concerns that it would not make enough money from such an investment as it would have to share the network with other providers.
Fibre broadband would offer speeds of up to 100Mb - compared to the current top advertised speed of 24Mb.
“Here as much as anywhere we need to ensure that there is a healthy environment for investment - which can support, in turn, competition and innovation,” said Richards, speaking at a conference in London.
“We want investment in a competitive environment,” he added. “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.”
Superfast broadband will be central to the way we live in the future, said Richards. “Alongside mobile broadband, it will, in time, have a similar impact on our society and economy as the first generation of broadband.”
His words come as Sky Broadband (www.Sky.com) is rumoured to have been carrying out secret trials of fibre-to-the-curb in London, which could rival cable operator Virgin Media's (www.VirginMedia.com) 50Mb launch this year. Sky has played down the rumours saying that it was just “a few men in white coats making a technical study with no commercial involvement”.
Michael Phillips, BroadbandChoices.co.uk product director, said: “It’s great that Ofcom is keeping the spotlight on next generation broadband access.
“However, any investment will undoubtedly be focused on big cities and those in rural areas will once again be left with a poor standard of broadband - as is already too often the case with ADSL. This is an issue that Ofcom must also address.”
Related article - Boost your broadband speed.
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