Ofcom’s regulation sparks inquisition from investors
Earlier this week, BT announced that it would invest 1.5bn into the broadband industry, as a means to expedite the rollout of fibre technology. Their procedure will support the deployment to over 10 million homes. This action comes following Ofcom’s regime, which enticed operators to invest in the future of broadband UK technology. Currently, the country employs copper-wire facilities for all communications. Unfortunately, this infrastructure is unaccommodating to consumer demands, resulting in the need for fibre deployment.Today, O2 pledged its future investment in the cause, as long as Ofcom changed its rules to ensure a healthy return on investment. According to the operator, it is imperative that these guidelines properly protect investors, as they currently are not guaranteed substantial security. Before they approach such a decision, proper regulation is needed to sustain their participation in the process of fibre deployment.BT has also expressed their stand on this issue, explicitly displaying that it wishes to see ruling alterations, as current regulation needs considerable clarification. The current regulations act against market-dominating networks, imposing for these networks to open the industry to their competitors. Of those operators who wish to significantly invest in fibre deployment, most are considered as one of the dominant networks. This, and many of the regulation’s other stipulations, oppose the activity of these comprehensive networks. Practically, Ofcom’s proposed regulations do not serve as a proper incentive to potential investors, often failing to protect their contributions.