The UK’s current regulatory regime offers no incentive for smaller businesses to invest in new networks because of incumbent BT’s market dominance, according to David Carr, chief executive of superfast broadband developer Digital Region.
Carr is calling…
The UK’s current regulatory regime offers no incentive for smaller businesses to invest in new networks because of incumbent BT’s market dominance, according to David Carr, chief executive of superfast broadband developer Digital Region.
Carr is calling on Ed Vaizey, the communications minister, to lower the prices BT charges for its sub loop unbundling to help the company build a fibre optic broadband network across South Yorkshire.
In a statement, Carr said: “BT is holding back the national rollout of superfast broadband by inhibiting competitive access to its underground cable network and by maintaining a pricing stranglehold over competing providers that need to connect to BTs street cabinets in order to reach individual homes … BT’s current pricing model is cost prohibitive for rival providers and is preventing many new players from entering the market in the first place.”
However, a BT spokesman told TelecomFinance that claims of a monopoly over superfast broadband were “very ill informed”, pointing to broadband and cable operator Virgin Media’s wide network in the UK.
Unlike Virgin, he said BT offers all service providers open access to its network on an equal basis.
“There are numerous ways companies can access BT’s network so it seems as if this is simply a dispute over price and the margins these companies are seeking to make,” he added.
“The price for sub loop unbundling is subject to regulatory oversight and so we recommend the companies concerned use an alternative product if their business case doesn’t work. Either that or they become more efficient or increase their prices to their end users”.
