I spotted this news swiftly disappearing on a news site.
http://ofcom.org.uk/media/news/2008/05/nr_20080521Ofcom today announced the removal of regulations for wholesale broadband access in areas of the UK which are served by effective competition.
The decision is part of Ofcom’s commitment to review and, where appropriate, remove regulations in markets where there is effective competition, further promoting innovation and investment.
The regulatory environment created by Ofcom has resulted in significant competition which has matured at different rates across the UK. The most competitive areas tend to be those where there is high population density, in particular large towns and cities and business districts.
Following a public consultation, Ofcom will deregulate almost 70 per cent of the UK wholesale broadband market where there is now strong competition.
The measure will affect those parts of the country which are now served by four or more wholesale broadband providers and where no single company has significant market power. In these areas customers are protected by the disciplines of effective competition.
However, some parts of the country do not enjoy this level of competition. Where there is less competition and where a company still has significant market power, Ofcom will maintain regulation designed to promote retail competition. This requires BT and KCOM, in Hull , to provide a wholesale product to other providers on a fair and reasonable basis, thus allowing these providers to offer retail services.
In February 2008 the European Commission endorsed Ofcom's proposal for regulation of the wholesale broadband access market in the UK , noting that it is based on detailed economic evidence and that it represents a reasonable move towards better targeted regulation. The approval was the first time the European Commission had agreed to geographically targeted regulation in broadband markets.
Ed Richards, Ofcom Chief Executive said, “This is a major step forward in the UK broadband market reflecting the success we have had in promoting effective competition. It shows that we are determined to deregulate wherever we can do so in a way that is consistent with the broader public interest.” He added, “We now need to build on these foundations and see timely investment and a competitive market emerge for next generation access as well.”
Lets hope deregulation leads to increased competition, although I suspect that in many of the high turnover markets its the case that competitors will do "unofficial deals" to ensure a minimum market price, but hey we can at least go through the self delusion that maybe there are some honest companies out there
