Ofcom Calls For Investments In Nationwide Fiber Optic Network

The body responsible for regulating the Telecoms sector, Ofcom, has presented a new framework to encourage investment in Britain's next generation networks, much of which is being shouldered by BT.

Ofcom's Chief Executive, Ed Richards, unveiled his vision at the Intellect conference in London, adding that a regulatory framework would be conducive to substantial private investments, allowing operators to "make and keep a rate of return that is commensurate with the risks they are taking”.

"We want investment in a competitive environment," he added. "Over the last few weeks there has been a step change in the level of interest and engagement on Next Generation Access issues from a range of companies and organisations."

BT is expected to be the main investor in this nationwide fiber optic network project which should cost roughly GBP 15 billion, but ex-British Telecom has been quick to express concerns about the financial viability of such an endeavour, especially as it will have to share it with other providers.

The framework will be formally launched this September and will hopefully foster a healthy competitive environment.