(Alliance News) - The UK telecommunications regulator on Thursday it has set out conditions for networks to ramp up the rollout of full-fibre broadband for the next five years from April 1.
Ofcom said in its Wholesale Fixed Telecoms Market Review published on Thursday that it plans to put these conditions in place by keeping both entry-level superfast copper broadband service and slower copper broadband packages prices flat in real terms. This is in addition to the progressive removal of the UK copper network after the full-fibre rollout. It said it is not expecting to introduce cost-based prices for fibre for at least 10 years, however.
The regulator said it also will prevent BT Group PLC's Openreach from harming competition by reviewing all long-term discount agreements it offers its wholesale customers, and restricting anything that could stifle investment by rivals.
In response, BT said Ofcom's market review is "broadly in line" with its internal expectations, and it expects to earn a "fair return" on its GBP12 billion 'Fibre to the Premises' investment.
As a result, BT confirmed plans to build Fibre to the Premises to 20 million premises by the mid- to late-2020s in order to provide "vital" connectivity for homes and businesses in the UK. Further details of the build plan will be announced once a full review of Ofcom's statement has been undertaken, BT added.
"This is good news for all fibre providers in the UK. For us, it is the green light we've been waiting for to get on and build like fury. Full-fibre broadband will be the foundation of a strong BT for decades to come and a shot in the arm for the UK as we build back better from this pandemic. Connecting the country has never been more vital," said BT Chief Executive Philip Jansen.
The broadband move follows Ofcom revealing on Thursday the outcome of its 5G spectrum auction, in which BT's mobile operator EE Ltd secured new spectrum in the 700 megahertz and 3.6 to 3.8 gigahertz bands for GBP452 million.
Shares in BT were down 1.8% at 149.75 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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