KC ( Karoo ), the incumbent telecoms operator and broadband ISP for Hull and East Riding (Yorkshire, UK), managed to generate an estimated £150 million for the regions local economy last year. The DTZ Consulting report - 'Economic Impact of KC in Hull' - noted that 94% of the people KC employed were local Hull residents and 68% of its total spend was with local suppliers, which is double the industry average.

In total the operator, which is often criticised for resisting calls to offer truly BT comparable wholesale services (WLR3 and SMPF/MPF access) in the area, employs over 1,400 full-time staff. It's further estimated that the £150m brought into the local economy by KC is equal to approximately 3% of Hull’s total economy.


It's now significantly easier to see why Ofcom has been so reluctant to force KC into opening up its network to wider competition. The operator's contribution is claimed to be 300 times greater than the average Gross Value Added (GVA) of Hull-based businesses. Rivals would find it very difficult to match that.


The report also reveals that KC committed more than £500,000 to local community initiatives last year. All of this could easily give Ofcom pause to think before acting upon any competition calls. Naturally there would be those whom might argue that the overall benefits of forcing KC into a more competitive market would ultimately bring about greater benefits, although such things are very difficult to judge.

KC said at the end of last year that it would "continue to lead the way in rural broadband provision" and will provide a minimum broadband service speed of 2Mbps across the entire (disproportionately rural) network by Spring 2011. That's three years ahead of the governments own national UK target (2015).