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* Ofcom sets out proposals for fixed-line regulation
* Plans set different regimes for urban and rural areas
* National network operator BT says plan is a step forward
(Adds BT's response, shares)
By Paul Sandle
LONDON, Jan 8 (Reuters) - Britain will "supercharge"
investment in full-fibre broadband by encouraging more
competition in cities and supporting provider BT in
rolling out faster connections in rural areas, UK telecoms
regulator Ofcom said on Wednesday.
Prime Minister Boris Johnson vowed to upgrade the country's
internet networks in his successful pitch to voters last month,
pledging to deliver full-fibre nationwide by 2025.
The opposition Labour Party wanted to nationalise BT's
fixed-line network and provide free services, a radical step
that put broadband at the top of the political agenda.
The regulator wants different regulatory regimes for rural
areas and for cities and urban areas, where firms including
Virgin Media and Cityfibre are building fast networks.
"We're removing the remaining roadblocks to investment and
supporting competition, so companies can build the networks,"
said Ofcom interim CEO Jonathan Oxley.
BT, which owns and operates the national Openreach network,
welcomed the plan.
BT shares were up 3% at 198 pence in early trade, topping
the FTSE 100 index.
"We were also really encouraged by the new government's 5
billion pound commitment to facilitate the build of
gigabit-capable networks to the hardest-to-reach parts of the
country," said BT CEO Philip Jansen.
"We will continue our discussions with Government, Ofcom and
the industry so that we can have the confidence to significantly
extend our role in this important national mission and increase
our full fibre target to 15 million premises and potentially
beyond."
Britain has lagged European rivals in building "gold
standard" broadband, which use fibre-optic cables all the way
from the exchange to people's homes without using copper.
Ofcom, however, said earlier changes encouraged more
companies to invest in full-fibre, and coverage grew to 10% from
3% of premises between 2017 and 2019.
It said its proposals for 2021-2026 would help ensure nobody
gets left behind.
It wants to cap entry-level superfast broadband to
inflation, which will provide a margin on fibre investment,
while keeping the fastest fibre products unregulated, supporting
competition between network providers.
In rural areas where Openreach is the only viable network,
it wants to allow the company to recover costs across a wider
range of services.
Ofcom also said it would ease regulation on the ageing
copper network in areas where full fibre is rolled out so BT
does not have the cost of running two networks and to encourage
customers to switch to faster services under the proposals.
The consultation on the proposals closes on April 1.
(Editing by Kate Holton and Jason Neely)
