MuniWireless

The Ofcom Report on the communications market in the UK says that the OECD’s recent study which shows the UK with relatively high broadband prices, is flawed.The Ofcom Report on the communications market in the UK says that the OECD’s recent study which shows the UK with relatively high broadband prices, is flawed.

A recent OECD report placed the UK 16th among 30 countries in a study on broadband prices (cost per megabit). The Ofcom report says that the OECD study is flawed because the UK stats came only from Internet service providers. It did not include prices from local loop unbundling operators who are active in the UK market and offer low broadband pricing. Here’s the main criticism of the OECD study: “The report also looked at broadband prices in isolation, despite the fact that so many UK consumers now buy broadband as part of a bundle of services, and some of the largest broadband providers, like BSkyB, TalkTalk and Vodafone, do not supply stand-alone broadband products.”

No need for fiber in the UK?

The Ofcom report also says it is difficult to compare UK (copper-based) broadband packages with those offered by FTTH operators in Japan (100 Mbps): UK broadband providers don’t see the need for speed because the users don’t see the need either (lack of content taking advantage of those speeds). So why should they invest?

I am not sure I agree with the report’s explanation for why FTTH isn’t being rolled out more quickly. I think it’s just that the ISPs will squeeze as much out of copper as they can and not invest in FTTH if they can get away with it.

Ofcom will explore international comparisons of broadband in the 2007 edition of its International Communications Market Report due out in December.

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