LONDON (Alliance News) - Sky PLC Monday called in UK regulator Ofcom to launch a full investigation into the UK broadband market, and in particular arguing that historic under-investment in BT Group PLC's Openreach business has led to problems with service quality, and expressing concerns about future competition in the market.
Openreach is BT's infrastructure division, which installs and maintains BT's network.
In its submissions to Ofcom's strategic review of digital communications Sky says that whilst regulation has supported effective competition and new entrants have challenged BT, superfast broadband services are regulated different and as a result there is a risk of reduction in competition as the UK transitions to services based on the new superfast technology.
"We believe that Ofcom should move quickly to ask the Competition and Markets Authority to undertake a full competition inquiry. A reference to the CMA would allow these vital issues to be examined with increased speed and thoroughness by a body with the powers to take whatever action should be deemed necessary. Given the rapid changes taking place in the sector, we believe this should happen as soon as possible," said Chief Strategy Officer Mai Fyfield in a statement.
Shares in Sky are trading down 1.4% at 1,051.00 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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