Ofcom Flexs Muscle over Broadband - 16-Oct-07
Not only does Ofcom believe that internet users are being short-changed when it comes to their broadband speed but it is also concerned about the sector's ability to match speeds being delivered in other parts of the world.
The regulator is concerned that UK internet services are inferior to those enjoyed in countries such as Japan, Korea and Germany, where speeds of up to 100Mbps are available.
Our Minister for Competitiveness, Stephen Timms, took time out from election speculation to warn broadband companies that the government could intervene to hasten the roll-out of high-speed services. One option is known as "fibre to the kerb" which could offer speeds of up to 50Mbps. Accountants and taxpayers might be perturbed to hear that a nationwide fibre network might cost £15bn!
Ofcom also plans to examine regulation and competition options for the broadband network, to ensure operators perform in a similar fashion to that which makes BT's network accessible to competitors.
A recent survey has suggested that 62% of UK broadband clients achive less than 50% of anticipated connection speed. And 25% of the 180,000 surveyed achieve no more than a quarter of the maximium advertised speed. As a result, Ofcom is being pushed to introduce mandatory information provision from internet service providers (ISP's) about the actual speed customers are likely to receive, similar to interest rate regulations applied to credit card companies.
Ofcom
Source: NFP Techno
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