Out-Law News 2 min. read

Ofcom seeks "level playing field" for deployment of ultrafast broadband


UK telecoms companies wishing to deploy 'ultrafast' broadband services are to be given the same rights of access to BT-owned infrastructure as BT itself, under plans outlined by Ofcom.

The regulator has also proposed to change the way BT recovers costs from, and makes charges relating to, third party access to its physical infrastructure. It said there was a need to ensure "a level playing field" between access rights to Openreach's ducts and poles enjoyed by "BT’s downstream businesses" and those rights enjoyed by other telecoms providers.

Openreach is a division of BT that provides network connection and maintenance services to BT and many of its rivals. Ofcom is pursuing the legal separation of Openreach from BT.

The regulatory measures have been proposed after BT's rivals raised concerns "about the absolute costs and time required to build … [ultrafast broadband] networks, and uncertainty over generating a sufficient return on their investment", Ofcom said in its consultation paper (73-page / 342KB PDF).

The regulator said it wants to make it "easier and more cost effective for telecoms providers to invest in advanced, competing infrastructure by improving … access to the network of poles and underground ducts that carry telecoms cables" which is operated by Openreach.

Equivalent rights of access to infrastructure will be established for BT and its rivals in relation to the deployment of ultrafast broadband networks, and conditions will also be placed on the way costs can be recovered by BT for third party access to the infrastructure, according to Ofcom's proposals.

Ofcom said: "BT should use the same processes and systems as other telecoms providers, effectively consuming [physical infrastructure access] itself as far as practicable, when installing fibre in its own ducts for scale deployment of ultrafast broadband services."

"BT should recover physical infrastructure costs (e.g. duct repairs) arising from use by other telecoms providers in the same way it recovers such costs arising from its own use – for example, by spreading these costs across all services which make use of the duct," it said.

As part of its plans, Ofcom is exploring whether it would be appropriate to allow engineering contractors to carry out network deployment works on behalf of telecoms companies. Currently, Openreach carries out all "build works" for its own infrastructure.

Ways to allow telecoms services to be connected to homes more easily and cheaply from Openreach infrastructure is also being explored by the regulator. At the moment, telecoms companies face "space and load bearing capacity constraints" with existing Openreach poles, which can only be overcome by replacing or strengthening those poles at significant upfront cost, Ofcom said. Those solutions also extend the time it takes to make those final connections to properties and can represent a "matter barrier" to deployment, it said.

Ofcom is consulting on what steps to take next up until 31 January 2017. It said it intends to make formal proposals on wholesale local access in the spring next year.

Yih-Choung Teh, Ofcom's competition policy director, said: "Fibre is the future for broadband, and Ofcom is helping to deliver that through competition between networks. Our plans will give providers increased confidence to invest in their own full-fibre networks at reduced cost."

In a statement, BT said it is "keen to take part" in the regulator's consultation.

"Openreach has the largest full fibre network in the UK, and has plans to reach up to two million premises with this technology by the end of 2020," a BT spokesperson said. "Full fibre is not the only way however to deliver ultrafast broadband and we plan to reach a further 10 million homes with ultrafast speeds in the same timeframe."

"Our ducts and poles have been open for other companies to use for several years now and we’ve taken proactive steps to improve access since Ofcom’s last consultation. Five companies have worked with us on trials to develop improved processes that will become business as usual in January. We will also publish a digital map of our network ahead of schedule in the new year, and we’ll continue to enhance the duct and pole sharing product if other companies are keen to invest," they said.

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