The UK broadband market is on the verge of market deregulation; Ofcom announced that the regulations governing the price of the BT wholesale services could be removed in 70 percent of the country.
What the future holds will now become more difficult to predict as the removal of regulations governing price will bring with it a fair share of ambiguity.
Ofcom has provided more detailed information on the possible deregulation in its press release along with a link to a 155-page document that provides its analysis of the market.
Ed Richards, Chief Executive, Ofcom, said that market deregulation would be a huge step forward in the UK broadband market and reflect Ofcom’s success in promoting effective competition.
He also said that deregulation would kick start investment and prove to be a good foundation for the emergence of a competitive market for next-generation broadband products, which in turn would make high connection speeds such as 100Mbps affordable to consumers.
However, whether this will happen cannot be predicted as of now since the current market may not be completely prepared for the burden of very large investment projects.