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Old 29-11-2010, 07:02   #14
Ignitionnet
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Re: Virgin Media refuse to open to competitors.

Quote:
Originally Posted by Stuart View Post
We aren't talking about the EPG. It's worth noting that VM do allow other companies on their EPG. Their rates are effectively regulated by the need to compete with Sky.
Indeed but they have the final call over it. Sky have no such luxury and must allow others who pay to use their EPG. I could set up a channel dedicated to discussing my dislike of goat's cheese and Sky would have to carry it on their EPG if I paid the Ofcom mandated fee.

Quote:
Originally Posted by Stuart View Post
As for their delivery system, well, anyone who has enough money can set up a ground station, and rent space on one or more of the Astra transponders. Sky cannot prevent that even assuming they wanted to. I suspect that Sky would prevent that if they could.
You just kinda killed your own argument there. The point of the regulation is in part due to the barriers of entry. As you have rightly said anyone who has the money could set up a ground station and rent space on Astra. Compare that to the costs of competing with BT or Virgin Media, far higher barrier to entry, far stronger case to regulate access to facilitate competition.

Quote:
Originally Posted by Stuart View Post
So, yes, the public/private thing is a defence.
Nope - based purely on barriers to entry and ignoring SMP the case to regulate Virgin Media's network is far stronger than that of Sky. Sky's distribution mechanism is rented and anyone could do likewise if they chose with relatively little outlay compared with digging up roads to compete equivalently with Virgin.

Who paid for the network is entirely irrelevant. This isn't my opinion, this is the opinion of the regulator.

Quote:
Originally Posted by Stuart View Post
And seeing as the article is actually about requiring VM to open the cable network to other ISPs, has Sky ever been required to open their own lines to other ISPs? Has anyone, apart from BT?
Sky don't have any of their own lines?

To answer your question yes, Kingston Communications are adjudged to have Significant Market Power in Hull, therefore are required to open their network to other operators.

The above document has some odd things about it in Virgin's favour though. BT are regulated differently depending on which area of the country we are dealing with and their market share in those areas, the exchange areas being split into Market 1, 2 and 3 with 3 being deregulated and BT allowed to charge different wholesale prices, Virgin Media are for what ever reason regulated based on their share of the market nationwide. It's something that should be addressed regardless of outcome as it is a discrepancy.

You may find this interesting, do especially note page 11.
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