IPstream rules in some parts of the UK to be eased by Ofcom

The product pricing of BT IPstream by BT wholesale has been two-tier for some time now, but the request by BT broadband for a variation in undertaking has now been granted by Ofcom, which means that IPstream products will be different throughout the county with a wider scope for prices.

Using the amount of competition in an area Ofcom split the UK into a number of market areas. Market 3 is the area that has been granted the variation and covers 69.2 percent of premises in the UK. This market is defined as those areas where more than 10 000 premises are served by the exchange and where there are 4 principle operators or more.

Details regarding comment from interested parties and the variation during the period of consultation can be found on the Ofcom official website in the form of a 30 page document and readers are advised that this document may take a lot of reading.
As well as affecting IPstream now, the proposal also covers the 21CN WBC product range, although availability is quite limited because only a few providers (8 being the current estimate) supply it and due to its low coverage it has quite a low volume. It is possible now that BT Wholesale may either reduce its prices in order to compete with its LLU provider rivals or increase its prices a little in the belief that those left in Market 3 will stay even with this price increase, and this increase will then be used to fund further roll-outs of its products like fibre cabling, or will allow it to provide to 4000 telephone exchanges that remain with broadband from the subsidies. The path that it takes will, however, be impossible to predict due to this new freedom of pricing.

The ability to release a single provider product is one of the more interesting aspects that the rules being removed will mean to BT Wholesale in the Market 3 area. This would mean that if a new Video of Broadband product was required by BT Retail or anyone else and the consumer had server more local to them the network costs would be reduced or BT Wholesale would not be required to offer this product on the some basis the other providers would have to because they can work on and release it in the exchanges.