TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Policy & Regulation

Policy & Regulation

Strange bedfellows: Don’t force BT to open its network say its arch competitors

Ian Scales
By Ian Scales

Sep 14, 2015

via Flickr © Groman123 (CC BY-SA 2.0)

via Flickr © Groman123 (CC BY-SA 2.0)

As Ofcom delves into the mechanics and business models required for a ‘networking market’ in the UK (as it must do from time-to-time) the perennial public network conundrum is back for inspection (as it always is).

That being: how should a regulator balance the requirement to ensure some form of price-disciplining competition in the provision of both network infrastructure and services, while at the same time making sure that those who end up investing and competing on that basis get a reasonable return?

At issue this time around is the call for BT to be forced to ‘open up’ its dark fibre network to other players at regulated wholesale prices. That would arm competitors to better serve their corporate customers with broadband services, while some of them could also compete more effectively with BT to deliver services to the UK’s underserved areas with broadband technology that BT either can’t or won’t deploy itself. Without that access, the alternative - building out their own fibre at vast expense - just wouldn’t be viable it’s claimed.

So opening up BT’s fibre is naturally a regulatory development that many competitive telcos and networking players in the UK would welcome.

Many…  but not all.

Not the competitive players building out fibre with a view to offering it wholesale to those same players clamouring to get BT to open up. They think it’s a very bad idea indeed.

A gang of four UK fibre builders - CityFibre, euNetworks, Virgin Media and Zayo - have got together and formed an ‘Infrastructure Investors Group’ (IIG) to better provide a united front against any move by Ofcom to force BT to open up its fibre.

The group argues that they are pro-competition and pro-investment, but that unbundled BT fibre would represent unfair competition since it would be priced  below commercial levels and would therefore artificially cap prices and so undermine their own existing and future investments.  If that happened, then BT would actually maintain its position as dominant infrastructure provider in the UK attenuating any future infrastructure competition anyway.

The IIG’s says its members are big spenders on in the UK’s communications infrastructure. Virgin Media has embarked on its £3bn Project Lightning expansion programme; CityFibre’s programme of Gigabit City roll-outs is ongoing  and both Zayo and euNetworks are already invested in network projects in the US and Europe, and are looking to move into the UK next.

Essentially, the IIG’s argument is that they have already committed investment on the basis that the UK market will remain fibre-poor, enabling them to command a high and certain return. Any regulatory adjustments made to meet changing conditions (or to push along goals such as broadband availability) are to be opposed on the basis that they’re not fair to existing investors.

Related Topics
  • Access Evolution,
  • Analysis & Opinion,
  • Broadband,
  • Business Models,
  • News,
  • Policy & Regulation,
  • Telco & CSP

More Like This

Access Evolution

What’s up with… Cellnex, Orange and MásMóvil, UK cloud market

Apr 5, 2023

Security

What’s up with… Ericsson, Vodafone, Cellnex and Vapor IO

Jan 12, 2023

5G Evolution Summit

5G for fixed wireless access deployments

Oct 20, 2022

Access Evolution

What’s up with… FCC, Spirent, HPE and VMware

Aug 9, 2022

Access Evolution

Will Rosenworcel finally move and push Gigi Sohn into the FCC seat?

Aug 5, 2022

Email Newsletters

Sign up to receive TelecomTV's top news and videos, plus exclusive subscriber-only content direct to your inbox.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

1:17:33

From telco to techco: The impact of next-gen operations on skills, talent acquisition and retention

1:14:31

Achieving maximum operational efficiency: How service providers can best operate at speed and scale

1:14:20

Why data and APIs are key to implementing the vision of the digital services provider

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us

  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).