Regulator Ofcom ruled on Tuesday that it will present "no regulatory barriers" to the development of super-fast broadband infrastructure.
The ruling will allow BT to proceed with an investment of £1.5bn in the network, giving up to 20 million UK homes access to high-speed internet.
BT made clear it only wanted to make the move if regulator Ofcom allowed a fair return on that investment. "Our message today is clear: there are no regulatory barriers in the way of investment in super-fast broadband," said Ofcom chief executive Ed Richards.
Msg#: 3861659 posted 12:28 pm on Mar 3, 2009 (gmt 0)
That's good news, but the sting in the tail will be that BT will have no price controls on this, so knowing BT you can be sure rivals will be priced out.
Ofcom should have demanded that all big UK ISPs pool up in this investment - big cost of it is digging ground, so if multiple ISPs share the costs then it is a lot cheaper and ensures competition will be present.
Msg#: 3861659 posted 11:47 pm on Mar 3, 2009 (gmt 0)
And are Offcom and BT going to reimburse webmasters and server owners for the extra bandwidth and associated cost required of web sites?
Some older servers in low-bandwidth centres can be swamped by half a dozen simultaneous accesses of a small video at today's broadband speeds as well as pulling large pages at high speed. If helped by accellerator plugins some accesses already pull a dozen large pages complete with images within a couple of seconds.
Between spam and large video files, encouraged by the likes of BBC, the internet is already rapidly approaching meltdown if it isn't already there. This should pretty well finish it off in the UK.