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Ofcom CEO issues warning for broadband market

In a recent speech at the London School of Economics, Ofcom CEO Sharon White warned against mergers in the broadband sector, saying that it would kill the little competition that currently exists.

In what is already fiercely-competitive industry, White said that competition is needed in order for the market to survive.

She said: “Companies here and abroad are racing to provide landline, mobile, broadband and TV products in a single package, over converging fixed and wireless networks. But we are seeing evidence that customers are less likely to switch providers, which could dampen competitive pressure.”

Her speech comes after the news that telecoms powerhouse BT and mobile service provider EE were planning to join forces, along with the £10 billion acquisition of O2 by Three UK which has pushed its subscriber base up to around 33 million.

White went on to highlight broadband as a priority for Ofcom, saying: "poor internet access is clearly unacceptable when communications are essential to how we live and work. Making services universal is a key priority for Ofcom and we are working closely with the Government and industry to make this happen.”

Ofcom has been busy in the broadband market of late, having investigated the likes of Sky for ignoring cancellation requests, as well as considering a split of BT and Openreach.

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