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EU endorses Ofcom plans to relax broadband rules

Wholesale broadband (opens in new tab) 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 (opens in new tab), 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 (opens in new tab) 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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.