{"id":2057,"date":"2012-11-09T13:24:13","date_gmt":"2012-11-09T13:24:13","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=2057"},"modified":"2012-11-09T13:30:39","modified_gmt":"2012-11-09T13:30:39","slug":"ofcom-start-review-of-uk-fixed-line-and-wholesale-broadband-markets","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2012\/11\/ofcom-start-review-of-uk-fixed-line-and-wholesale-broadband-markets.html","title":{"rendered":"Ofcom Start Review of UK Fixed Line and Wholesale Broadband Markets"},"content":{"rendered":"

The UK communications regulator, Ofcom<\/a>, has today launched two new reviews that aim to examine the effectiveness of competition between telecoms operators in both the Fixed Access Market<\/strong> and the Wholesale Broadband Access Market<\/strong> (WBA). A major focus will be on the impact of new super-fast broadband services.<\/p>\n

<\/p>\n

Related reviews have traditionally resulted in new procedures and other remedies that can boost competition<\/strong> and lower prices<\/strong> in some areas, while doing the opposite in others (i.e. removing charge controls etc.).<\/p>\n

Part of this process usually rests on whether or not a specific telecoms operator, such as BT<\/a>, is deemed to have Significant Market Power<\/strong> (SMP) in a particular field as this may require stricter regulation to improve competition. For example, past reviews have helped to develop cheaper unbundled (LLU) services as a means of giving ISPs more control over BT<\/a>’s national broadband and phone network.<\/p>\n

The first Fixed Access Market Review aims to examine competitive conditions in the following fixed access markets over the period from April 2014 to March 2017:<\/p>\n

The Relevant Fixed Access Markets<\/strong>
\n* The Wholesale Local Access (WLA) market;<\/em>
\n * The Wholesale Fixed Analogue Exchange Line (WFAEL) market;<\/em>
\n * The Wholesale ISDN30 market;<\/em>
\n * The Retail and Wholesale ISDN2 market; and<\/em>
\n * Various additional markets in Hull \u2013 residential fixed narrowband analogue access, business fixed narrowband analogue access and retail ISDN30.<\/em><\/p><\/blockquote>\n

The FAM review will also look at the emergence of superfast broadband \/ Next Generation Access<\/strong> (NGA) services, although Ofcom<\/a> warned\u00a0it was “conscious that investment and take-up of these new networks and services is still at an early stage<\/em>” (at the last review they barely even existed) and would thus structure any “NGA interventions<\/em>” to promote new investments whilst at the same time “maintaining competitive choice<\/em>” for consumers.<\/p>\n

In other words BT<\/a> probably won\u2019t face aggressive adjustments to their existing FTTC<\/a> and FTTP<\/a> products because the regulator doesn’t want the operator to feel as if it cannot gain a return on their existing \u00a32.5bn<\/strong> privately funded investment, which aims to make superfast broadband available to 66% of the UK by spring 2014. But some changes may be necessary to give rival ISPs, such as Sky Broadband<\/a> and TalkTalk<\/a>, more price and general flexibility to help differentiate their products.<\/p>\n

Ofcom<\/a>’s related review of the WBA market will somewhat overlap this area and focus on all of the different broadband services within BT and KC’s (Hull) coverage. Both reviews have called for any input to be submitted by 5pm on 20th December 2012<\/strong> which, given the complexity of the sector, seems like a surprisingly short period of time.<\/p>\n

It’s worth remembering that Ofcom’s previous reviews effectively gave BT a period of grace (thought to be roughly 5 years) with which it could roll-out superfast broadband and not have to face any\u00a0stiff regulatory intervention. But that period has already run half its course and Ofcom is now looking to the future.<\/p>\n

Review of the Wholesale Broadband Access Markets <\/strong>
\nhttp:\/\/stakeholders.ofcom.org.uk\/consultations\/review-wholesale-broadband\/..<\/a><\/p>\n

Review of the Fixed Access Market <\/strong>
\nhttp:\/\/stakeholders.ofcom.org.uk\/consultations\/fixed-access-markets\/..<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The UK communications regulator, Ofcom, has today launched two new reviews that aim to examine the effectiveness of competition between telecoms operators in both the Fixed Access Market and the Wholesale Broadband Access Market (WBA). 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