18 February 2008
The European Commission (EC) has endorsed a proposal from UK regulator Ofcom to relax the regulation of broadband services in the country.
Viviane Reding, EU Commissioner for Information Society and Media, said plans to regulate the wholesale broadband sector are consistent with rules set out in the EU framework.
Ofcom said that competition in the supply of wholesale broadband access services has matured at different rates across the UK - and it has identified four distinct sub-national markets.
The EC said the decision to tailor regulation to local competitive conditions through the identification of sub-national markets is justified.
This allows Ofcom to deregulate an area of the UK that covers 65 per cent of UK premises.
It is hoped that deregulation will lead to increased competition and ultimately reduced prices for broadband users.
Ofcom has now closed its consultation on the issue and will now begin a period of review while it considers representations made from all interested parties. Ofcom expects to issue a statement detailing its final proposals in the spring.