03 March 2009
According to industry website Computing.co.uk, the decision will allow BT to price super-fast broadband to customers at market rates in order for the company to make enough profit to justify the level of investment needed.
BT has previously been heavily regulated by Ofcom in order to prevent the company from abusing its position and in order to ensure fair competition.
However, BT has successfully argued that the scale of investment needed in the new project wouldn't be justifiable without the company being able to determine its own pricing standards.
The project will see fibre cabling installed to street cabinets and is expected to cost about £1.5bn. The plan is to deliver super-fast broadband to at least 40 per cent of homes in the UK by 2012.
Ian Livingston, BT's chief executive, said in a press release: "This is an important step and will allow the market to develop the next generation of the UK's broadband infrastructure, which is so critical to the UK's future as a knowledge-based economy.
"The stage is now set for a wide variety of players, of all different shapes and sizes, to do their bit in providing consumers with a choice for superfast and innovative services. Now it's all about delivery."
Chief executive of Ofcom, Ed Richards, said that the advance of super-fast broadband is an important development and will deliver benefits to consumers and businesses. Their decision took into account the availability of other services including Virgin Media's cable-based products.
He said: "Our message today is clear: there are no regulatory barriers in the way of investment in super-fast broadband; we want to promote investment but also ensure that there is fair and effective competition for the future."
Livingston added that the company plans to announce the next 500,000 homes to be fibre-enabled soon.
Super-fast broadband on the way
Ofcom has announced that it will not regulate prices from communications giant BT as it attempts to roll out next-generation broadband. The decision means that the telecoms company will be able to make the necessary investment in fibre-optic cabling.According to industry website Computing.co.uk, the decision will allow BT to price super-fast broadband to customers at market rates in order for the company to make enough profit to justify the level of investment needed.
BT has previously been heavily regulated by Ofcom in order to prevent the company from abusing its position and in order to ensure fair competition.
However, BT has successfully argued that the scale of investment needed in the new project wouldn't be justifiable without the company being able to determine its own pricing standards.
The project will see fibre cabling installed to street cabinets and is expected to cost about £1.5bn. The plan is to deliver super-fast broadband to at least 40 per cent of homes in the UK by 2012.
Ian Livingston, BT's chief executive, said in a press release: "This is an important step and will allow the market to develop the next generation of the UK's broadband infrastructure, which is so critical to the UK's future as a knowledge-based economy.
"The stage is now set for a wide variety of players, of all different shapes and sizes, to do their bit in providing consumers with a choice for superfast and innovative services. Now it's all about delivery."
Chief executive of Ofcom, Ed Richards, said that the advance of super-fast broadband is an important development and will deliver benefits to consumers and businesses. Their decision took into account the availability of other services including Virgin Media's cable-based products.
He said: "Our message today is clear: there are no regulatory barriers in the way of investment in super-fast broadband; we want to promote investment but also ensure that there is fair and effective competition for the future."
Livingston added that the company plans to announce the next 500,000 homes to be fibre-enabled soon.
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