Ofcom decision pleases Virgin Media

The recent decision made by the communications regulator Ofcom over the BT investment is fibre-optic networks has pleased BTs main rival, Virgin Media.

In a recent report the communications regulator, Ofcom, announced that it was backing communications giant BT in the investment of one and a half billions pounds to roll out a high speed fibre-optic network to support next generation broadband in the UK. Currently the market leader in this advanced network in the UK is Virgin Media, which is the main rival to BT.

However, an official from Virgin Media has stated that the company is pleased about Ofcom’s decision to back BT with this investment and rollout, stating that the decision strikes a balance between the need for investment and the need for competition within the industry. He said that Virgin Media had therefore welcomed the decision by the regulator.

The Virgin Media spokesperson said: ‘Ofcom’s statement strikes a sensible balance between the need for need to stimulate investment in next generation broadband and the need for competition. Virgin Media is spearheading the UK’s transition to next generation broadband with the aggressive roll-out of its ground-breaking 50Mb service.’

He added: ‘This, together with the pro-active migration of its existing customers to higher speeds will stimulate take-up and help the industry and policy-makers alike understand more about consumer demand for super-fast broadband. As the digital age gathers pace, Ofcom’s statement provides a robust framework for further market-led investment.’

However, despite the enthusiasm from Virgin Media regarding the decision over the BT investment, some industry officials have been speculating over whether the one and a half billion pound investment will go far enough, with some suggest that far more money is needed to provide high speed broadband to the majority of homes in the UK.