Ofcom Urges Super-Fast Broadband Investment
After it gave BT the go ahead for its new super-fast fibre optic broadband network, Ofcom is now urging more providers to make an investment.
Ofcom is hoping to increase broadband speeds to an average of 40Mbps across the whole country over the next few years and wants further investment in broadband networks to make this happen.
When talking about the changes in the regulation policies regarding broadband networks, the chief executive of Ofcom, Ed Richards, said:
“It will deliver significant benefits to consumers and businesses with the prospect of new digital services delivered over the internet at high speed.”
One way in which Ofcom is making it easier for broadband providers to invest is by letting them set their own price for wholesale broadband.
Usually Ofcom would interfere and set policies on how much each provider should charge – an action that has prevented suppliers from gaining as much profit back from their investment as they’d like.
However, with Ofcom now wanting to encourage broadband network growth, the regulations have been changed to benefit more providers.
In supporting this, Mr Richards said:
“Our message today is clear. There are no regulatory barriers in the way of investment in super-fast broadband. We want to promote investment but will also ensure that there is fair and effective competition for the future.”
Ofcom also proposed to help support industry developments and to continually review the market. However, they have admitted that they do not know how successful private investment would be.
Overall it is hoped that the changes in the regulations will encourage further private investment in the advanced broadband networks that are required for high-speed internet access in every UK home.