Talktalk, the biggest consumer ISP in the UK, has become the first service provider which has announced that it will become the first wholesale customer of BT's brand new fibre-access network infrastructure that promises speeds of up to 40Mbps.
The announcement came after Ofcom laid down the ground rules that will dictate the terms which BT will have to abide by. Talktalk's chairman, Charles Dunstone told the FT (subscription) that the company would be the first to resell packages based on the BT's infrastructure and was currently "working on a commercial launch" for the service.
Ofcom will allow BT to charge whatever fee it wants from its customers with the communications watchdog adding that these prices will anyway be "constrained" by the highly competitive wider broadband market (think Virgin Media).
Most traditional copper-based ADSL2+ broadband services have a theoretical limit of 24Mbps although none manage to reach these speeds and with Virgin Media leading the gradual rise of broadband speeds, BT has had no problem convincing retail ISPs that fibre optic is the future.
BT Retail is currently working on fibre-to-the-cabinet access under the moniker, BT Infinity, which promises 40Mbps speeds for as little as £19.99 but with some strings attached; the former telecom monopolist has been investing around £2.5 billion to bulk up its offer in FTTC and Fibre-to-the premises.