BT has criticised Ofcom’s plans to allow its competitors access to Openreach’s physical fibre network.
Under the regulator’s proposal, BT would have to offer so-called dark fibre to other providers, which would then use their own equipment to…
BT has criticised Ofcom’s plans to allow its competitors access to Openreach’s physical fibre network.
Under the regulator’s proposal, BT would have to offer so-called dark fibre to other providers, which would then use their own equipment to control the connection.
BT is already obliged to provide wholesale leased line products to its rivals, which combines access to Openreach’s fibre via BT’s network equipment at regulated prices.
The new proposals mean alternative operators would no longer have to rely on BT, and the regulator argues this will “increase the opportunity for competitors to create tailored, high-capacity data links at cost-effective prices for their customers”.
Ofcom says the new measures are designed to promote competition and innovation, but BT disagrees.
In a statement, the incumbent said imposing dark fibre measures would disincentivise other operators from investing in fibre, and increase costs for Openreach, diverting “resources and [adding] more complexity just when we’re beginning to make progress on improving service”.
BT said its current offer has created “a level playing field and a vibrant, competitive market with hundreds of competing companies, large and small”.
Backhaul solution
In spite of BT’s reluctance, Ofcom’s proposal may solve the issue of BT’s mobile backhaul provision, which is under the spotlight due to its planned acquisition of EE.
At present, Openreach provides the majority of the high-speed fibre linking up mobile operators’ base stations.
EE’s rivals have said BT’s entrance into mobile raises competition concerns around backhaul. However, if it were to provide dark fibre other mobile operators could gain control over their connections to towers, or perhaps a new independent company could emerge to provide backhaul.
The Competition and Markets Authority is reviewing the BT-EE deal and will have noted Ofcom’s dark fibre pitch.
Ovum analyst Matthew Howett noted that Vodafone had been “particularly vocal about the need for a dark fibre product to connect base stations and backhaul mobile traffic without fear of interference from BT”.
Howett added that obliging operators to provide dark fibre was a fairly common requirement for European operators, with around half of EU members having legislation to this end. As well as satisfying mobile operators, the dark fibre announcement would also benefit large enterprise users.
Quality control
Ofcom has also presented new minimum quality of service performance requirements to which Openreach must adhere. The regulator said it was concerned that Openreach “often takes too long to install leased lines, and too often changes the date on which it promises to deliver services”. Rivals arguing for a structural separation of Openreach claim that the network unit prioritises BT. Observers however do not expect regulators to impose a more complete separation.
Ofcom has now opened up a consultation process on dark fibre that will close at the end of July. It expects to publish its final decision during the first quarter of next year, after which time BT must publish details on wholesale pricing and terms by summer 2016.
If the regulation comes to fruition dark fibre would not be available to other telecoms providers until April 2017.
