8th Jan 2020 09:35
(Alliance News) - Openreach on Wednesday welcomed UK telecoms regulator Ofcom's latest proposals concerning the rollout of fibre networks.
Openreach is a wholly-owned subsidiary of FTSE 100 telecommunications firm BT Group PLC, though it has its own board to ensure some independence.
Ofcom earlier Wednesday unveiled four proposals to "supercharge" the expansion of the UK's fibre infrastructure.
"Today's proposals appear to be a big step in the right direction to give clarity and investment certainty," said a spokesperson for Openreach.
"Like the government and Ofcom, we want to upgrade the UK to faster, more reliable full fibre broadband. We're getting on with the job, building to 26,000 premises each week and we remain on track to reach four million homes and businesses by the end of March 2021."
"We'll consider the range of proposals carefully and will continue to work with Ofcom and industry on getting the conditions right to help achieve the government's ambition of rolling out gigabit capable broadband across the UK as soon as possible," the spokesperson continued.
In more urban areas, Ofcom said, where there will be a choice of networks, it will set Openreach's wholesale prices to encourage competition from new networks. Wholesale prices charged by Openreach to retail providers for its entry-level broadband service would be capped to inflation.
However, Openreach would be allowed to charge a "small" premium for some products if they are delivered over full fibre.
In rural regions, where there is little prospect of multiple fibre networks, Openreach will be allowed to recover investment costs across the wholesale prices of a wider range of services, to encourage investment.
Ofcom, if BT promises to build fibre networks in certain rural areas, would allow Openreach to include the costs of this investment in upfront wholesale prices. If not, the costs would only be permitted to be recouped after new networks have been built.
Turning to the old copper network, Ofcom will cap wholesale prices charged by Openreach. To encourage competition, Openreach will not be allowed to offer discounts on copper services.
Ofcom will also help Openreach wind down the "ageing" copper network, and enact measures to help Openreach move customers onto new fibre networks.
BT shares were 2.5% higher in London at 196.85 pence each, meaning it is the best performing stock in the FTSE 100 on Wednesday.
By George Collard; [email protected]
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