RE: Ft sunday14 Mar 2021 10:07
This is the full article.....
BT will this week be given the green light to make a double-digit rate of return on a £12 billion investment in full-fibre broadband, in a key verdict by the telecoms watchdog.
Ofcom is poised to say on Thursday that the former state monopoly’s Openreach division will be able to make a “fair” return on its work to connect 20 million homes to super-fast internet.
However, BT and the regulator have also been in conflict over the length of time that BT will enjoy that promise. In a speech last December, Ofcom boss Melanie Dawes said it would not impose price controls on full-fibre broadband for 11 years. BT has been pushing for 20 years, arguing that its investors need to make 10 to 12 per cent over the lifetime of the project. Ofcom’s review will be scrutinised closely for the length of its assurances.
The pledge on a “fair” return is likely to be welcomed by the government, which wants 85 per cent of homes connected to gigabit-capable broadband by 2025.
However, it will be a blow to companies that use Openreach’s network, such as TalkTalk, which have argued that it will mean higher prices for consumers.
Ofcom is set to be handed new powers to intervene if it sees anti-competitive behaviour by Openreach. BT will have to ask permission to challenge the “altnets”, such as CityFibre, in some areas. Also, Ofcom will have longer to scrutinise changes to commercial terms by BT and decide whether they would deter competition.
The outcome of the review comes a fortnight after news of the resignation of BT chairman Jan du Plessis.