BT Invest On High-Speed Optic-Fibre Broadband Network
With mobile broadband speeds being boosted periodically, by the ISPs and carriers all over the world, the railings for a similar approach in the fixed broadband segment is also on the rise. It has been a gradual yet significant graph of development for the wired connection that has currently hit the higher internet accessing speeds of broadband from the sluggish dial-up internet connections. With the introduction of fibre optics in the broadband sector, scope for greater speeds are depicted on the horizon. Virgin Media, apart from BT is the other ISP that has launched the service in the UK. At present they are contemplating seriously on a 50Mbps service.
In the present circumstances BT thinks that if only regulator Ofcom gives it the nod to acquire a reasonable return on a colossal investment, it would go ahead with its optic fibre venture. Here, BT is planning to invest GBP 1.5 billion for providing internet access speeds of 100Mbps to up to twenty million homes in the UK. They plan to complete the project by 2012, if Ofcom shows them the green light. The fibre-optic network optimised by BT would be highlighted by the set up of fibre-optic lines to street-side cabinets. The thinktank of BT avers that this would entitle them to offer speeds ranging from 40Mbps to 60Mbps. BT adds that in the end of the day, a million homes would be cherishing fibre to the home at 100Mbps speeds.
On the other hand, although Ed Richards, the Ofcom boss has already indicated that a
comfortable environment for BT to realise their project was very much in the mind of Ofcom, the existing barriers to investment will definitely discourage the broadband provider. In the recent past BT had urged the telecom regulator of UK to remove these barriers and hence ensure that anyone contemplating of investing in fibre optics could earn a decent rate in return.
Nevertheless, the plans of BT to lease access to the new fibre-optic network to third-party UK ISPs, in return for pricing freedom with a view to earn good returns on its investment, could stimulate Ofcom. It is worth pondering that at present Virgin Media offers hardly any form of wholesale access. Therefore, many experts perceive that Ofcom’s approval of BT’s new venture is always on the cards.
