EU endorses Ofcom plans to relax broadband rules

Wholesale broadband access prices in the UK might be on the way up after the European Union Commissioner, Viviane Reding, backed Ofcom's decision to "tailor regulations" in local regions that are sufficiently competitive.

A statement issued by Ofcom, mentions that the regulatory body "recognised that competition in the supply of wholesale broadband access services has matured at different rates across the UK and has identified four distinct sub-national markets, Ofcom proposes to tailor regulation in these sub-national markets according to the level of competition in each."

Competition has caused a number of internet only companies to fold and disappear completely or sell out, leaving only a number of big players who have bet on multiple media to recoup the expenses associated with serving broadband to customers.

Sky has lost nearly £100 million pounds on broadband and telephony services for the six months to 31 December 2007, something that other small companies have not been able to sustain.

BT has already said they were backing the move which could mean that broadband prices could marginally be increased in a near future; already, UK citizens have to pay for a fixed landline fee if they want to use ADSL broadband internet.