BT is to offer access to it’s next generation fibre network to rival broadband providers on a more restricted basis to begin with after the Ofcom proposal was accepted by The European Commission.
BT only have to offer Virtual Unbundled Local Access (VULA) for the time being but The European Commission has told Ofcom that they should make BT offer full physical unbinding as soon as is feasible both technically and economically!
What this actually means for rival broadband providers is that they will have access to the new fibre networks through a Virtual Unbundled Local Access which will mean that they can take control of the customers line but at the present time they will not be able to physically add any of their own equipment. Instead, BT will be installing the equipment at the telephone exchanges which means that they can still charge the price they want to rival broadband providers which potentially for the interim period at least while VULA access is all that is granted we may not see the price wars with fibre broadband until other rival providers get their own full physical access to the fibre network.
The Digial Agenda Commission, Neelie Kroes, said:
“In this specific instance, virtual unbundling seems the best option to safeguard competition and enable consumers to benefit from a wider range of services provided over next-generation fibre infrastructure.“
Only last month BT announced that it would be spending an extra £1bn on installing it’s fibre optic network to make it available to two thirds of the UK.