Russ
03-02-2005, 13:10
Today we put forward our response to the latest stage of Ofcom's review into the working of the UK telecoms industry.
Our response contains a set of proposals with the power to create the most exciting and innovative telecoms market in the world. They would provide all players with confidence in the regulatory framework, reducing red tape where possible.
These are far reaching proposals. They show we are absolutely committed to playing our part in creating a new regulatory framework that keeps pace with technology, rewards investment and encourages innovation.
Our proposals include:
· Set up an Access Services division to provide transparent and equal access to our local network
· Cut a range of wholesale broadband prices and introduce faster services
· Reaffirm our commitment to local loop unbundling (LLU)* by proposing a further price cut to the fully unbundled product
· Increase the commercial attractiveness of Wholesale Line Rental**, by increasing the margins for companies using the product
As part of this proposed settlement, Ofcom would:
· Focus regulation on BT's local network through its Access Services division
· Roll back other regulation on a progressive and rapid basis
· Allow successful investment in next generation networks to be properly rewarded
· Allow BT to compete on a level basis with other operators in the market
Let's be crystal clear. These are proposals. Ofcom will now consider what we have said, with final decisions expected in June.
If these proposals go ahead, the Access Services division would be a new part of our organisation, containing the most heavily regulated parts of BT. It would have responsibility for ensuring equal access to the services and assets associated with the local loop - the copper wires that run between telephone exchanges and households. Its CEO would report to me, and run a separate management board.
We would also establish an Equality of Access Board with two independent members chosen in consultation with Ofcom, to oversee its operations. This would demonstrate that every operator is treated equally, allowing regulation to be rapidly rolled back in other areas.
As you know we plan to invest up to £10 billion in 21CN over the next five years. While no other European telco is making this level of investment, 21CN has the potential to bring substantial benefits to the UK. We believe it is the right thing to do, but the economics need to stack up.
The UK takes broadband seriously, thanks to BT. We are now ready to deliver faster wholesale broadband services, and cut prices for many wholesale broadband access products. These include cuts to the full local loop unbundling product, once consultations are complete. Broadband service providers will have greater choice over how they deliver and differentiate their services.
Our proposals would benefit customers, other industry players, and everyone in the UK. And there are opportunities for BT too.
A satisfactory outcome will give us the chance to invest in a world-leading network and earn a fair return on our investment. It will give us the chance to compete fairly at the retail level on a deregulated playing field. It will give us the chance to innovate and develop new products. And, it would give us the reassurance that there will be regulatory stability going forward.
This stability would result in a vibrant and competitive marketplace which is good for customers and shareholders.
It would also be liberating for all of us who work in the industry.
Our response contains a set of proposals with the power to create the most exciting and innovative telecoms market in the world. They would provide all players with confidence in the regulatory framework, reducing red tape where possible.
These are far reaching proposals. They show we are absolutely committed to playing our part in creating a new regulatory framework that keeps pace with technology, rewards investment and encourages innovation.
Our proposals include:
· Set up an Access Services division to provide transparent and equal access to our local network
· Cut a range of wholesale broadband prices and introduce faster services
· Reaffirm our commitment to local loop unbundling (LLU)* by proposing a further price cut to the fully unbundled product
· Increase the commercial attractiveness of Wholesale Line Rental**, by increasing the margins for companies using the product
As part of this proposed settlement, Ofcom would:
· Focus regulation on BT's local network through its Access Services division
· Roll back other regulation on a progressive and rapid basis
· Allow successful investment in next generation networks to be properly rewarded
· Allow BT to compete on a level basis with other operators in the market
Let's be crystal clear. These are proposals. Ofcom will now consider what we have said, with final decisions expected in June.
If these proposals go ahead, the Access Services division would be a new part of our organisation, containing the most heavily regulated parts of BT. It would have responsibility for ensuring equal access to the services and assets associated with the local loop - the copper wires that run between telephone exchanges and households. Its CEO would report to me, and run a separate management board.
We would also establish an Equality of Access Board with two independent members chosen in consultation with Ofcom, to oversee its operations. This would demonstrate that every operator is treated equally, allowing regulation to be rapidly rolled back in other areas.
As you know we plan to invest up to £10 billion in 21CN over the next five years. While no other European telco is making this level of investment, 21CN has the potential to bring substantial benefits to the UK. We believe it is the right thing to do, but the economics need to stack up.
The UK takes broadband seriously, thanks to BT. We are now ready to deliver faster wholesale broadband services, and cut prices for many wholesale broadband access products. These include cuts to the full local loop unbundling product, once consultations are complete. Broadband service providers will have greater choice over how they deliver and differentiate their services.
Our proposals would benefit customers, other industry players, and everyone in the UK. And there are opportunities for BT too.
A satisfactory outcome will give us the chance to invest in a world-leading network and earn a fair return on our investment. It will give us the chance to compete fairly at the retail level on a deregulated playing field. It will give us the chance to innovate and develop new products. And, it would give us the reassurance that there will be regulatory stability going forward.
This stability would result in a vibrant and competitive marketplace which is good for customers and shareholders.
It would also be liberating for all of us who work in the industry.