16 November 2007
Competition in the UK broadband sector looks set to be strengthened by a new Ofcom consultation, published yesterday.
The industry watchdog mapped out a plan which proposed widespread deregulation in areas of strong competition and consumer protection in areas where broadband competition is weaker.
Ofcom's document was mainly positive about the state of broadband competition in the UK with four out of five people currently able to choose between two or more providers and 65% having the choice of four or more.
In areas where local loop unbundling (the process by which rival firms run their own networks through BT exchanges) was not viable, the consultation recommended encouraging competition at the retail level, rather than in the networks themselves.
This would affect the 20% of householders, mainly those living in remote and rural areas, who have BT as their sole wholesale operator.
By contrast, the 65% who have a range of network operators are to benefit from regulation restrictions being removed, Ofcom added.
The consultation as a whole closes next February.
© 2008 Adfero Ltd
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