[CAnet - news] UK regulator probes national fiber network and next generation Internet

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[From posting on Dewayne Hendricks list -- BSA]

U.K. government probes next-generation broadband

By Jonny Evans, MacWorld, 09/26/07

<http://www.networkworld.com/news/2007/092607-uk-govt-probes-next- 
generation.html>

Ofcom has launched a consultation that probes next generation  
broadband networks, with particular focus on whether the U.K.  
requires a nationwide fiber network.
The U.K. government communications regulator is also making its  
initial proposals for future regulation of the broadband market.

The regulator notes that broadband has become a mass-market service,  
with providers other than BT offering services over three million  
unbundled broadband lines and Virgin Media offering a service to 50  
percent of the country over cable.

Ofcom reveals that ninety-nine percent of the U.K. is connected to a  
broadband-enabled exchange, and claims over half of U.K. households  
have implemented broadband. Ofcom also notes that broadband prices  
have fallen by 9 percent in the last twelve months.

But broadband take-up on such a massive scale is putting great demand  
on current copper-based networks, with ISPs implementing technology  
to deliver faster speeds over existing networks.

The regulator warns that the development and consumption of high  
speed services means current generation networks will at some point  
be unable to deliver the very high speed broadband service customers  
may demand.

Ofcom's consultation highlights how the market and infrastructure  
conditions in the U.K. are very different to those countries where  
investment in fiber has already been strong.

The regulator accepts that the deployment of U.K.-wide fiber channels  
could have a major impact on the economy and on U.K. consumers, and  
notes the need for regulatory clarity in support of any investment in  
such infrastructure.

Ofcom wants to encourage competition while leaving plenty of  
opportunity to innovate in the market, and concedes whatever  
regulation it does put in place must also reflect the "significant  
commercial investment risk" associated with deploying next-generation  
networks

Ofcom CEO Ed Richards said: "Investment in next-generation access  
will represent a substantial commercial risk and the market should  
decide where and when it will be made. We want to ensure there are no  
barriers to investment and provide a clear regulatory environment  
which will help encourage investment.

"But we also want to ensure that the benefits of competition which  
consumers have enjoyed with current generation broadband can also be  
achieved as we move to higher speed next generation access."

The consultation closes on Dec. 5.


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