Ofcom encouragement full fibre investment part of a bigger picture, says Cable.co.uk
- The regulative body aims to protect customers and promote competition by cutting the wholesale price that Openreach can charge telecom compotes for its super fast broadband service, offering download speeds up to 40Mbits/s.
- New rules include stricter requirements for Opeanreach to repair its faults and install new broadband lines quickly.
Friday, 31 March 2017: Ofcom have announced measures which are designed to promote investment within new fibre networks and ensure that customers are protected from inflated prices
Commenting on the findings Dan Howdle, consumer telecoms analyst at Ofcom-accredited broadband advice site Cable.co.uk, says:
“Ofcom is ensuring that by capping the wholesale price – that's the underlying sum charged per line, per year to providers operating on the Openreach network – and by ensuring these cuts are passed on to consumers, average household telecoms bills drop substantially across the next three years.
“By placing no such cap on prices charged for ultrafast (variously defined as speeds exceeding 100, 300 or 1000 megabits per second, depending on who you ask), investment in these faster technologies will be positively encouraged. Ultrafast will thereby take on the role of premium service – a spot currently occupied by standard fibre, and by that token become the (somewhat more expensive) option for consumers who wish to be at the cutting edge.”
“Ofcom is also tightening up the rules when it comes to fixing faults. Taken together, these moves are very interesting – both appear to push Openreach further toward the role of public service, and further away from being the profitable concern of a single provider.”
Notes to editors
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Dan Howdle has been plugged into the attitudes of UK broadband, TV and mobile customers for over two decades, running research fieldwork both nationally and internationally on behalf of the biggest players in the industry. Dan is now consumer telecoms analyst at Cable, as well as more formally operating in the role of its Director of Communications and Content.
An experienced broadcaster, commentator and writer, Dan has appeared on BBC TV and radio, ITV, Sky and in the national papers. Dan has advised Ofcom on issues surrounding service quality, administered Cable’s Broadband Service Quality Awards and sat on the panel of judges for the Internet Service Providers Association annual awards.