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| Pressure Grows For Fibre Optic Network |
| Wednesday, July 09, 2008 at 20:06 by Peter Smith |
As broadband speeds in the UK yet again come under scrutiny from the industry regulator OFCOM it has been reported that there is growing support for BT's request to increase the wholesale price which it charges broadband operators to use the current network. The move is one which had been widely expected by those in the industry, but it does beg the question, who will pay for the increased cost?
There has been a growing concern that some of the smaller broadband operators in the UK will struggle as and when wholesale broadband prices do rise – as seems highly likely after today's comments – because of their business model. The cheap rates currently offered by some of the smaller players will simply be untenable when faster networks come on board, with BT rumoured to be ready to invest between £10 billion and £15 billion in a new nationwide fibre optic network which would push broadband speeds to levels many many times faster than those available today.
Whether this will take out some of the competition in the sector remains to be seen. Many believe that the next generation broadband network will revolutionise the industry and take UK broadband into a different league, pushing the service ahead of many larger countries throughout the world. But will the UK consumer be willing to contribute to the higher initial cost? |
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