To: Frank Edwards who wrote (12063 ) 6/28/1999 7:53:00 PM From: pat mudge Respond to of 18016
Is this what BT was waiting for? >>> 22nd June 1999 UK RELAXES BROADBAND NETWORK RULES The UK government has published its plans to ease the regulation of broadband to encourage development in the more rural areas of the UK and to open the competitive environment from 2001. The moves eliminate regulatory differences which would have discriminated in different ways against different types of licensee. When exclusive franchises disappear in January 2001 all existing cable franchise milestones will be abolished and build obligations will also disappear. Where franchises are non-exclusive these milestones will disappear immediately. Network operators (notably BT), which were facing requirements to build new networks underground in areas where their existing services were carried on poles, can now plan to continue to use overhead networks where these already exist, and competing operators will have access to the same infrastructure. The government also expects all operators to consider pole and duct sharing, and trench sharing (including with other utilities), and to do so on a sensible commercial basis, so that competitive broadband networks can eventually reach all areas with the minimum environmental impact. The government believes that the competition clauses in BT's main operating licence and in any broadband licences it may acquire, will be sufficient, alongside the wider Competition Act powers which the regulators hold, to ensure that BT does not leverage its dominance of one market into another unfairly. Telecommunications Act licences, which are currently being re-issued to reflect changing European legislation, will allow any PTO to carry entertainment services on their networks, once they have obtained a Broadcasting Act licence from the ITC. These licences are already on offer for the non-cable franchised parts of the UK and the ITC will be advertising them for all the UK during 2000, ready for the liberalisation date of 1.1.2001. COMMENT These changes may seem fairly small but the implications for the development of broadband outside existing cabled areas are immense. Cable companies may be able to delay serving parts of existing franchises which are guaranteed coverage under their existing licenses - though this is may not happen other than as a short term measure for good commercial reasons. By the same token BT, which has been slow in coming forward with an open commitment to offer ADSL, is being offered a carrot worth billions of pounds, to do so. The requirement to re-lay existing overground local loop network underground if it is to offer broadband, was undoubtedly a disincentive for BT. The economics which meant the network was built on poles in the first place seventy or more years ago are just the same for a re-build today. Removing this wholly artificial demand will cut the costs of a re-build by more than half for the 30% of the UK which currently has no broadband licences. Perhaps we will now see BT make the long-awated public commitment to ADSL which has been much leaked and talked about 'off the record' for months. >>>>>