Ofcom outlines the benefits of superfast broadband to providers

Communications regulator, Ofcom, has outlines the financial benefits of superfast broadband to providers in the hope that it will serve as an incentive to invest in this advances technology

Over recent months the news has been filled with stories about how the UK is lagging behind many other countries when it comes to broadband, with countries such as Japan and France enjoying superfast broadband whilst the UK trails along using copper telephone wires and receiving nowhere near the speeds that other countries are getting.

The countries that receive superfast broadband are those that have switched to high speed fibre optic cables, and this is something that Ofcom and many other industry officials want to see in the UK. However, the cost of switching to fibre optic networks could run to fifteen billion pounds, and this is a price that neither the government nor Internet Service Providers want to shoulder alone.

However, Ofcom, the communications regulator, has offered ISPs an incentive to invest in superfast broadband in the UK, stating that if they invest in this advanced technology then it will be a win win situation, as consumers will enjoy the faster speeds that many other countries are getting and ISPs will be able to reap the financial rewards.

Ed Richards, the Chief Executive of Ofcom said: “Our position is clear. Ofcom favours a regulatory environment for the next generation of networks and access that both allows and encourages operators to make risky investments, to innovate for the benefit of customers and, if the risks pay off, for the benefit of shareholders too.”
He added: “If operators are going to make investments in new infrastructure – investment that is inherently more risky than developing the existing infrastructure – then they need to know that the regulatory framework will allow them to make and keep a rate of return that is commensurate with the risks they are taking.”