O2 Follows BT, Plans 100mbps Broadband Offers

BT won't be alone in the race for the first UK provider to deliver broadband services capable of 50mbps; O2 is also considering plans to launch its own fibre-to-the-home network but is awaiting on Ofcom to amend telecoms regulations.

The Telefonica-owned company will refrain from investing until the Office of Communications changes to rules to allow private companies to make "healthy returns" on their investment - so says ZDNet.

O2 also told ZDNet.co.uk: "We need clear and unambiguous regulation in place before we start shelling out huge sums of money."

BT has already announced that it will be investing massively to roll out a massive nationwide fibre-access network to more than 10 million homes in the next few years.

Virgin Media, another serious competitor, has already announced plans that it would be offering a 50mbps broadband service to 12 million UK homes by this time next year while BSkyB is said to be mulling plans to install green kerbside street boxes to bring faster broadband access quicker and at a cheaper cost.

While all the main actors of the broadband market, including BT's competitors, seem to applaud BT's decision to rollout its fibre-optic cable network nationwide, they would well be in for a bad surprise especially if their own investments are made obsolete by BT's grand plans.