Ofcom to launch discussions on next generation broadband

Ed Richards, CEO of Ofcom has pointed out that the regulator is in favour of creating the right kind of regulatory environment for the next generation of networks and encouraging the broadband providers to make risky investments for the benefit of consumers.

He further assured that if the network providers make investments in new infrastructure, ‘regulatory framework will allow them to make and keep a rate of return that is commensurate with the risks they are taking.’

He further said:
"We want investment in a competitive environment. It is encouraging that cable is now talking about seriously rolling out their next generation high bandwidth product at the end of the summer. The emerging success and rapid take-up of mobile broadband will provide a further spur to the fixed line operators to upgrade to next generation high bandwidth products to differentiate themselves competitively to consumers."

However, the investment for the new infrastructure for broadband and other next generation services is estimated to cross ten billion pounds and the government still opposes to the idea of getting the investment from public funding.  

As such, Ofcom is expected to commence discussions with the industry leaders on how these issues can be best resolved for the benefits of the consumers.: