BROADBAND : OFCOM MAY DEREGULATE PART OF UK MARKET.

Ofcom, the British telecoms regulator, received the European Commission's clearance on 14 February to deregulate the most competitive part of the UK broadband market (wholesale market for operators). The EU executive stressed the regulator's excellent work and the high level of competition in the sector in Britain.

The deregulated part of the market corresponds to the most densely populated zones, where at least four actual or potential providers serve areas with more than 10,000 homes and businesses. Nearly 65% of British subscribers are concerned ( Market 3').

"This is very good news for consumers [ ] who will be well protected," commented a spokesman, who added that the initiative is to their advantage and in the interest of investment.

The rest of the market remains regulated, but is divided up according to the level of competition (Hull, where Kingston Communications is the only operator, Market 1', where only British Telecom is present, and Market 2', where two or three operators are present and there are forecasts for four or more, but where the exchange serves fewer than 10,000 premises).

Ofcom has set a precedent with its "very detailed market analysis," notes the Commission. It also provides arguments in support of Information Society Commissioner Viviane Reding's views on regulation. This proves, she commented, that "the more effectively a national authority regulates, the faster the transition to competition law, which is incorporated into European telecoms regulations". Ofcom has made a commitment to...