Feeds

Ofcom and EU face off for high speed broadband row

Bureaucrats and Eurocrats set to butt heads on fibre investment

Boost IT visibility and business value

UK and European telecoms watchdogs may have set a collision course this week over whether incentives should be offered to tempt broadband giants to invest in new high speed internet infrastructure.

The UK government says delays in rolling out fibre could be a barrier to economic growth, but has only just opened informal discussions with BT and the rest of the broadband industry on how to make it happen.

In a speech in Budapest yesterday, the EU's information society and media commissioner Viviane Reding issued an early call for national regulators to act to boost investment in optic fibre. She said: "The treatment of Next Generation Networks is one of the most important regulatory issues facing us over the coming years.

"I want regulation to encourage investment in future networks. Regulatory holidays are not the solution, what we need is appropriate regulation that safeguards competition while creating new incentives for investment."

The commissioner's comments are in contrast to the stance taken by Ofcom boss and die-hard market forces advocate Ed Richards yesterday. Following the government's hush-hush summit on high speed broadband investment on Monday, he said [our emphasis]: "Ofcom's role is to deliver a robust regulatory framework allowing industry to deploy when there is a clear business case for doing so and in a manner which brings benefits to consumers."

The philosophical difference will serve to strain already tense relations between Ofcom and watchdogs in Brussels. The UK regulator has recently publicly grumbled about Viviane Reding's move to create a European über-regulator for telecoms.

She, in turn, has accused national watchdogs of having too cosy a relationship with industry.

Reding, who won the UK ISP trade association's "Internet Villain of the Year" gong this year, promised yesterday to draw up policy recommendations for national regulators on next generation broadband by the middle of 2008.

Efforts at Ofcom, meanwhile, are focused on economic analysis and establishing Richards' "business case" for the £15bn cash injection it's estimated a national optical network would need. BT's strategy, in public at least, is to wait it out and see if anyone else can make the sums work.

Stephen Timms, the Department for Business, Enterprise and Regulatory Reform (BERR) minister in charge of fostering next generation broadband in the UK, has meanwhile just started work on his "vision statement", a document that will be designed to contain no policies.

Ofcom is in consultation until 5 December on what its policy should be. Creating new artificial incentives to invest has not been ruled out, but would be unprecedented in the internet age and against the market forces doctrine now expounded at the regulator.

An Ofcom spokesman said part of the consultation's aim is to establish if there are special features of the UK market that mean Brussels shouldn't get involved in regulating it. ®

Bootnote

Though press weren't allowed to attend the broadband summit on Monday, BERR has helpfully provided a YouTube video press release instead. It's democracy 2.0 - just like first time round, but with nobody there to call bullshit on government PR.

"We are leading the world in broadband penetration, take up and use," claims Timms in the clip.

No we're not. It varies slightly depending who you ask, but nobody ranks the UK as a contender for first. According to the EU (pdf, page 5), we're seventh in Europe, behind Denmark, the Netherlands, Finland, Switzerland, Luxembourg and the mighty Belgium.

Seven Steps to Software Security

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.