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Ofcom's statement on Next Generation Access: green light, red ink? - Venture Insights

Report Overview

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Ofcom’s statement on Next Generation Access: green light, red ink?

PublisherEnders Analysis.
Publish Date March 5, 2009
Sector Fixed Line (Internet and Voice).
Company BT, O2, vodafone.

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Ofcom’s statement on Next Generation Access (NGA) gives BT the maximum possible incentive to invest by allowing a high degree of pricing freedom and some short cuts to reduce implementation costs.

But Ofcom cannot guarantee that BT will make a return from NGA, only the existence of an opportunity to make one.

Ofcom’s statement is certainly positive for BT, but we remain sceptical of the business case for BT NGA, particularly given the low price of all-copper based offers and Virgin Media’s roll-out of 50 Mbit/s broadband.