Broadband playing field set to level in time for 2012 Olympics

Up to ten million homes are set to benefit from BT's decision to allow rival internet companies access to its broadband networks.

If the move goes ahead it will place broadband companies in a strong position to take a chunk of the 40% of homes being hooked up to superfast broadband in time for the 2012 Olympics.

Steve Weller, communications expert at uSwitch.com, says: "BT's decision to open up its broadband ducts is a significant step towards creating a level playing field in the roll-out of super-fast broadband. Competitors and ultimately consumers will benefit from the £1.5 billion BT is spending on its new fibre optic network, setting 100Mb broadband in the sights of 40% of homes.

"Once the deal is agreed, rival companies will have the opportunity to supply homes via their own fibre optic networks - but using BT's ducts means that they won't have to dig up any roads themselves. While they will have to rent the ducts from BT, any savings they make could ultimately be passed onto consumers. Firms will be in a stronger position to compete directly with BT Infinity, BT Retail's new fibre optic broadband product that will be available to four million homes by the end of 2010 for £19.99 a month, capable of delivering speeds of up to 40Mb. However, this also begs the question of whether Virgin Media should also be taking steps to open up its cable networks for rival firms to use.

"Fibre optic broadband, already used by Virgin Media, is a high tech alternative to copper wire that will enable homes to enjoy more ‘bandwidth-hungry' applications, such as high definition movies, gaming and high quality streaming of video content such as iPlayer and YouTube.

"This is a savvy play by BT, ahead of a new government potentially forcing the issue. Should the Conservatives win the election, they have pledged to introduce legislation to force BT to open up its channels. But, whatever the motives, this move takes us one step closer to making high speed broadband an affordable reality for consumers."