Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (11692)	7/2/2001 1:58:12 AM
From: elmatador	Respond to of 12823

Few competitors seen in UK wholesale broadband By Carlos Grande, E-Business Correspondent Published: July 1 2001 21:03GMT \| Last Updated: July 2 2001 04:05GMT The provision of key wholesale broadband services will have to be put in the hands of monopoly or duopoly operators such as British Telecommunications, rather than several competitors, according to a leading member of the government's industry advisory group. Peter Radley, chairman of one of the committees of the Broadband Stakeholder Group, said that in a country the size of the UK there could be only a small number of broadband infrastructure companies - "fewer than 10, probably an economic justification for five or fewer". "Maybe for any specific infrastructure there would be only one or two players. You can argue about monopoly or duopoly, but what matters is competition at the retail level... Every mature industry has this kind of wholesale/ retail pattern to it," said Mr Radley, chairman of the UK arm of Alcatel, the telecommunications equipment supplier. His comments will inflame BT's competitors frustrated by being unable to access BT's local telephone monopoly. Last week saw the collapse of On Cue Communications, a £20m broadband start-up and BT's most direct competitor. Mr Radley's argument is likely to reinforce the position of BT and larger players such as Colt and Energis that have the resources to become widespread wholesalers. The Broadband Stakeholder Group was set up by ministers to shape government policy for encouraging UK-wide provision and use of broadband services. Mr Radley said monopolies or duopolies in regional areas, and particular technologies such as satellite, were acceptable. The essential element was choice between ADSL - which enables phone lines to be upgraded to fast internet access - and rivals such as satellite, wireless and cable. The original deadline for completion of full UK local loop unbundling - the process of allowing rival wholesalers into BT phone exchanges - passed yesterday with many exchanges not opened up and an dwindling number of participating telecoms companies. Most companies in the industry blame BT and Oftel, the telecoms regulator, for allowing the UK to slip behind other unbundling countries. Mark Ballet, On Cue chief executive, blamed government regulators for failing to ensure fair access to BT's local telephone monopoly. Mr Radley said group members were opposed to the kind of direct public subsidies put into broadband networks in Singapore, Sweden and the Netherlands, and being urged by lobbyists for the UK. Instead, it is examining potential tax breaks and low-cost government loans to providers of broadband infrastructure. Mr Radley said the evidence from overseas schemes was that direct subsidies to spur roll-out "by and large do not work". Although Mr Radley stressed the stakeholder group has not yet formed its conclusions, which will be presented to ministers in September, the ideas suggest the direction it is taking. The government is consulting on a plan to consolidate all broadband contracts for schools and other public bodies in some regions. This would be awarded to a single or small number of suppliers as a way of stabilising the sector and encouraging broadband investment in less financially attractive areas such as rural towns. xref Race against time, Page 3 www.ft.com/telecoms