Written by Nick Wood
The Independent Networks Cooperative Association (INCA), which represents the UK’s alternative network operators, has called for a dramatic re-shaping of the market.
In a new report (PDF), it argues that competition in the fixed broadband sector is being jeopardised by Ofcom regulations that benefit incumbent BT’s infrastructure arm, Openreach.
INCA also notes that BT – as the largest ISP in the country – has committed to only use Openreach for its retail broadband networks, which also puts altnets at a disadvantage. Reason being, said INCA, is because altnets need large-scale ISP customers to help them pay for their networks. The current situation also has the potential to lead to unnecessary network overbuild in parts of the country that are too small to support multiple wholesalers.
That said, the report also provides evidence that BT charges substantially lower prices for broadband in locations where Openreach faces competition from a rival wholesaler (see table) – so there are clearly some benefits to overbuild. You will note, however, that INCA chose to compare maximum prices in some areas with minimum prices in others, so it doesn’t really prove anything.
