Sky's Chief Hammers BT For Over-Charging
Posted: 03rd Nov, 2007 By: MarkJ
The Financial Times reports that BSkyB's chief, James Murdoch, has slammed the UK's incumbent operators (i.e. BT) for "charging too much money for too little". Murdoch was speaking as part of a video interview with the newspaper (here), where he also responds to questions about UK broadband speeds and IPTV:
Unfortunately Murdochs criticism doesnt reference any specific services or operators, perhaps to avoid giving BT any reason to feel that it must respond, though the swipe is clearly a broadside aimed towards them.
"When we go out there and we say we're going to challenge some of those big incumbent telecoms companies who've been charging too much money for too little to too many customers for way too long, we think that's good for customers. Ultimately, we think that really matters from a regulatory perspective as well. Our customers [are] free agents in this."
Ofcom is hoping to entice companies such as BSkyB or Carphone Warehouse to invest in ultra-fast broadband networks, but Mr Murdoch sees little need to spend the company's money on this, not least given that its current broadband investment will not pay back for three years.
"Innovation [in broadband] happens quickly, and it's been growing a lot in the past, so to imagine that it stops here I think is wrong." Local loop unbundling using BT's infrastructure, he says, "has a huge amount of life left in it".
Ofcom is hoping to entice companies such as BSkyB or Carphone Warehouse to invest in ultra-fast broadband networks, but Mr Murdoch sees little need to spend the company's money on this, not least given that its current broadband investment will not pay back for three years.
"Innovation [in broadband] happens quickly, and it's been growing a lot in the past, so to imagine that it stops here I think is wrong." Local loop unbundling using BT's infrastructure, he says, "has a huge amount of life left in it".
Unfortunately Murdochs criticism doesnt reference any specific services or operators, perhaps to avoid giving BT any reason to feel that it must respond, though the swipe is clearly a broadside aimed towards them.
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