uSwitch.com - Ofcom's BT broadband ruling
Britain's 17.3 million broadband users are set to benefit from today's Ofcom ruling that orders BT to open up their superfast fibre optic network to rivals.
uSwitch.com, the independent price comparison and switching service, explains how this decision will improve the service of the many Britons currently not receiving a super fast speed.
Underperforming: 6 million homes pay for an 8Mb service, but only 2 million actually receive it
Essential: Broadband now vital for many households, as 14 million households (82% of users) manage finances online
Benefits: Competitors and ultimately consumers alike will profit from the £1.5 billion BT is spending on its new fibre optic network
Pricing: Increased competition may drive down cost of superfast broadband
Ernest Doku, communications expert at uSwitch.com, says: "Although BT has allowed competitors access to their broadband ducts for several months now, Ofcom's decision cements this 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, and its intention to expanding its network to 4 million premises by the end of the year.
"Currently there is a vast disconnect between the broadband speeds that customers pay for, and the speed that they receive. 6 million homes pay for an 8Mb service, but only 2 million actually receive it. Allowing more providers to access BT's current super fast fibre optic system will give consumers more options to switch onto the service that is best for them, while still benefiting from BT's speeds.
"Rival companies now 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. However, this 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. Our research shows that high speed broadband is no longer a luxury item but has become essential for many households, with 82% of consumers now managing their finances online.
"This positive move takes us one step closer to making high speed broadband an affordable reality for consumers, as the increased competition may lead to providers reducing prices in a bid to attract consumer accounts. It will also provide much needed choice and faster speeds to consumers across the board."
For more information visit uSwitch.com.