Ofcom, the U.K. communications regulatory authority, will try to thread a needle this fall as it prepares to create a new framework encouraging fiber-to-customer deployment. On one hand, it wants to convince BT that a reasonable financial return can be earned if it deploys fiber-to-customer network.
On the other hand, Ofcom seems committed to a wholesale regime that allows competitors access to the network. And therein lies the problem. BT will want some assurance that wholesale rates resemble as closely as possible those it might get at commercially negotiated rates. That likely means relatively minimal price control.
BT's competitors will want healthy discounts that mirror what they currently can get for DSL infrastructure. Ofcom likely won't allow that, as such discounts arguably create too much uncertainty about rate of return.
That's a pretty tight needle to try and thread.
Saturday, July 5, 2008
Ofcom to Thread Fiber Through a Needle
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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