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BT UK Pushes Ofcom to Open Virgin Medias Broadband Cable Ducts

By: MarkJ - 8 March, 2010 (1:49 PM) - Score: 2594 - Fixed Line Broadband

BT is putting pressure on Ofcom to ensure that rival Virgin Media is forced to open access to its ducts (underground tubes where fibre optic cable can be run), despite the regulators previous ruling that VM did not have Significant Market Power (SNP) and thus would not be forced to do so. Such a move would allow BT and its competitors to deploy their own fibre optic cable infrastructure without having to dig up lots of extra roads.

The move is hardly unexpected and comes exactly a month after BT revealed, under some political pressure, that it was in discussions with Ofcom to take exactly the same measures itself (here). However the operator stipulated that it would only take such action if the regulation was fair and applied to rivals as well (catch 22).

A BT spokesman told the FT:

"It is remarkable that those calling for open access from BT are not willing to provide it themselves. We call on others to follow BT’s lead in offering to open its infrastructure and content to all on a fair basis. Competition is a two-way street. We support Jeremy Hunt’s [Shadow Secretary of State for Media] call for open access to all networks and call for others to follow our example and to open their infrastructure and services."

Virgin Media has been quick to respond with a fairly standard statement that appears to shrug off BT's attack. However, in further comment to the FT, the groups CEO Neil Berkett called the whole idea a "can of worms".

Virgin Media's statement said:

"We've invested over £13bn in ultrafast broadband in the UK, launched market-leading 50Mb broadband and have announced plans for 100Mb broadband by the end of this year. We're currently focused on delivering these ultrafast broadband services to more and more homes across the UK."

Next Generation Access (NGA) services, such as BT's deployment of up to 40Mbps FTTC and up to 100Mbps FTTH / P fibre optic based broadband technology and Virgin Media's 50-100Mbps Cable Modem (DOCSIS) products, are clearly becoming the new battleground. This can only be good news for consumers who stand to benefit from a wider range of service choice.

Ofcom is due to conduct a fresh study of exactly this issue during the spring, though it is not known what that will reveal. Similarly the impending general election makes everything uncertain as both main parties appear to have radically different ideas for solving/funding the NGA coverage gap.

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Comments: 10

BT v VM
Posted: 8 March, 2010 - 2:33 PM
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Good on you VM, don't let BT fool you, as BT is really bad as they don't care about peoples who live in a small area with small exchanges, BT only interesting in large exchanges and biggest cities.

VM, stick with your own plan, don't let BT ruined VM in future.

BT, shut-up and just go away!

Orbixx
Posted: 8 March, 2010 - 2:42 PM
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It seems silly to force people to dig up their own ducts. Virgin Media ought to be sensible and offer their ducts commercially (but viably) so others can provide fibre without unnecessarily digging up roads, causing high traffic, expending money unnecessarily and so forth.

Also Virgin Media's statement has pretty much ignored the entire issue completely and gone for a shameless plugging of their services, clearly attempting to use this event as marketing.

God damn it I hate Virgin Media, and their deceiving marketing.

Virgin Stand Up and Be Counted
Posted: 8 March, 2010 - 3:25 PM
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Go on open up your ducts - Go on, show the industry your support - forget yours and BT's mud slinging. BB my Arse eh.

timeless
Posted: 8 March, 2010 - 4:29 PM
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actually, l think VM should open its ducts for BT.. but l also think BT should open up its ducts for VM basically meaning it goes both ways.

in essence allowing VM to offer Cable where it originally didnt giving access to more ppl and a varying amount of services, agreed BT hasnt got the total monopoly any more considering other companies now offer lines that dont require rental to go to BT however l do believe that ppl should have more of a choice between both ADSL and Cable so why should BT just have access to VM ducts, shouldnt VM have access to theirs as well, basically giving more of a diverse choice of technologies to choose from?

BT v VM
Posted: 8 March, 2010 - 10:12 PM
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I hope VM can buy out BTWholesale! meaning a whole of uk will be fibre optic!

Tom
Posted: 8 March, 2010 - 10:38 PM
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BT have almost no re-usable ducts. They lay most of their cables in the ground or over head.

Its a good idea by BT if theyre willing to pay VM for the use of VM's ducts. Its the laying of those ducts that has put VM billions in debt.

Nigel Jones
Posted: 9 March, 2010 - 12:25 AM
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We appear to have extensive ducting on our mid 1990s housing estate -- just about the time the cable cos had financial issues.

As such it appears no cables were laid, but the ducts are everywhere (marked Cable/Wireless I think)

Shame they've lain empty for 15 years. Such a waste.IDEAL for fibre

Beetea
Posted: 9 March, 2010 - 9:04 AM
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If VM are so sure that they are better than BT, why don't they open up their ducts....? Some real competition is just what the customers want. Lets see them provide service to all those currently out of range. VM... put up or shut up please.

Wibblefactor
Posted: 9 March, 2010 - 10:01 AM
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VM has no market influence?!? what weed is OFCOM smoking? 50% market penetration in only the mostl densely populated areas is not what i call insignificant!!!!

BT v VM
Posted: 9 March, 2010 - 12:23 PM
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VM had the right to say NO to open up their ducts to BT.

VM - roll on to 100Mbps! :)