Ofcom: Mobile broadband to spur fibre rollout
Published: 07 Jul 2008 08:45 BST
The rapid take-up of mobile broadband could help spur the arrival of super-fast fibre broadband networks in the UK, according to telecoms regulator Ofcom, which has set out plans for a pro-investment regulatory framework that will guarantee operators who plough cash into fibre a fair rate of return.
Speaking at a conference hosted by the UK trade association for technology, Intellect, Ofcom chief executive Ed Richards said mobile broadband's rapid rise in popularity could help encourage fixed-line operators to invest in next-generation infrastructure, so they can offer high-bandwidth products and differentiate themselves competitively to consumers.
The regulator said there has been a "step change" towards the idea of investing in fibre in the industry from "a range of companies and organisations". Ofcom hopes a supportive regulatory framework will help keep this momentum going.
Richards said in a statement: "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," said Richards.
"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," Richards said.
He added: "We want investment in a competitive environment."
The regulator has written to communications-industry leaders inviting them to commit with Ofcom to help spur the rollout of next-generation networks across the UK and said it will aim to publish details of the regulatory framework in September.
Ofcom added that it will be hosting a series of "working sessions" as soon as possible, to focus on "practical action and resolution of areas of uncertainty".
Comparatively sluggish fat pipes are damaging UK Plc, according to communications industry organisation the Communications Management Association (CMA), part of the British Computer Society. The CMA has called on the government to create a national broadband strategy that will take account of rising demand for next-generation access to the internet over the next 12 to 24 months.
More than a third of UK businesses predict they will need speeds of 100Mbps to be able to meet future demand for next-generation internet technology, the CMA's Next Generation Access report has found.
More than half of businesses would like 10Mbps or more for their core business needs, the report found. However, nearly half of the companies surveyed said they are not willing to pay more for next-generation access.
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