BT’s “dark fibre”

Friday, July 13th 2012

In order to improve competition, the incumbent telecommunications companies may be asked by the European Union to open up their networks to competitors. According to industry experts, once it is done, then BT will be forced to give access to its competitors to its “dark fibre”, the unused optical fibre which is available for use in fibre optic communication.

The officials have consulted on the levels of regulation that would stimulate competition in the European Union and the measures to be taken to encourage both investment and super fast broadband rollout. As a result of this consultation, they have decided to ask the incumbent companies to open up their networks to rivals as well. The regulators would be asked to take measures against those national telecoms companies that do not give access to their networks to competitors.

The head of the EU’s Digital Agenda Programme, Neelie Kroes said that the plan is based on the principle of non-discrimination which ensures equivalence of access. Kroes admitted that in the existing networks, it could be costly and asked regulators to give due consideration to proportionality in such cases.

How this decision of the EU is going to affect the UK scenario is yet to be seen and it is a debatable point as many wholesale prices in the UK have already been regulated. However, EU competition regulators are closely monitoring the UK’s super fast rollout process and it is probable that BT would come under pressure to open up its ‘dark fibre’ to competitors which they could use for fibre optic communication.

The network expert at Thinkbroadband.com, Andrew Ferguson said that BT would say that already it is providing access to other CPs on an equal basis, equality in wholesale access to the Fibre To The Cabinet (FTTC) and Fibre To The Premises (FTTP). In his opinion the EU might want BT to give open access to its ‘dark fibre’ also but the costs for PIA would remain as a bone of contention. It has been cited that one of the reasons for BT’s rivals not taking active part in the rollout of next-generation broadband is the high cost levied by BT for the use of its ducts and poles.

The news from Brussels was welcomed by BT and it said that competition in the UK is more when Compared to other European countries. The company expects that regulations would be made to increase the access prices so that it would be possible for the investor to recover its investment. In a statement BT said that any suggestion from Commissioner Kroes is welcome and so far the company has not violated any regulations. BT stated that unlike in Europe, in the UK, BT is providing its rivals a fair and equal access. The statement added that the investment in the fibre broadband is a long term investment and many companies are unwilling to invest and hence the proposal of regulatory certainty is really welcoming.

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