Broadband Genie report on Ofcom’s proposal to deregulate UK wholesale broadband market
Ofcom proposes a plan to retain regulation in four distinct sub-national markets for wholesale broadband
[UKPRwire, Mon Nov 19 2007] Ofcom has published a consultation proposing to remove regulatory obligations in “areas of the country where strong competition is now a reality”. The Independent Regulators would still keep regulation in areas dominated by BT Group and KCOM group (formerly known as Kingston Communications), protecting consumers in parts of the UK where competition in the provision of wholesale broadband is still weak.
“The retail broadband market in the UK is already performing well, with healthy competition between a range of providers giving consumers choice,’ said Ofcom. “Broadband is available to 99.6% of UK households and more than 80% can choose between two or more wholesale providers. 65% of homes have the choice of 4 or more wholesale providers. In many areas consumers can choose between 8 providers.
Ofcom proposes a plan to retain regulation in four distinct sub-national markets for wholesale broadband:
The Hull area, covered by exchanges where KCOM is the only operator, covering 0.7% of UK premises.
Areas covered by exchanges where BT is the only wholesale operator, covering 19.2% of UK premises.
Areas covered by exchanges where there are two or three wholesale operators, covering 15.7% of UK premises.
Areas covered by exchanges where there are four or more whole wholesale operators, covering 64.4% of UK premises
Ofcom has found that there is still a dominance in Hull by KCOM and a dominance in 15.7% of the UK’s premises by BT, hence the Independant Regulators will continue to protect consumers by keeping existing rules that are designed to promote retail competition in these markets:
“These rules require KCOM and BT to open up their networks to other providers on a fair and equivalent basis and provide a wholesale product on which retail services can be built.”
Market 3 shows strong ISP competition and it has been noted that “no organisation enjoys significant market power there” and consumers have sufficient choice and are protected by competition. For this reason, Ofcom proposes to remove regulation currently imposed on BT Broadband in this market.
Speaking on the proposal from Ofcom Ciaron Dunne from Broadband Genie said: “The proposal from Ofcom to remove regulatory obligations in many areas of the Market speaks volumes on the increased choice an average broadband customer has. Ofcom has always stood to protect the consumer against an unhealthy monopoly in the communications market and improve a level of competition. However, with an ever-increasing variety of services and consumer guidance from the likes of Broadband Genie, this level of protection simply isn’t needed any more. It’s a promising sign.”
The consultation is due to continue until 7th February 2008.
Notes to editors
Broadband Genie allows users to compare broadband online, and is part of Genie Group.
Genie Group Ltd is a leading independent provider of internet comparison shopping services in the UK, and was set up in 2004 by Philip Wilkinson (co-founder of Kelkoo UK). Genie Group's unique selling point is 'the Genie', which makes personal recommendations to internet shoppers based on ground-breaking, intelligent technology. This gives Genie Group the ability to provide an enjoyable and satisfying internet shopping experience, and deliver an unmatched quality of sales leads to our affiliate merchants. Genie Group launched its flagship broadband comparison service Broadband Genie in January 2005.
More information can be found at http://www.broadbandgenie.co.uk . Please direct all media enquiries to Ciaron Dunne. Interviews with Philip Wilkinson can be arranged on request.
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