Out-Law News 1 min. read
28 Apr 2016, 5:21 pm
The UK's telecoms regulator has also imposed controls on the amount of money BT can charge its competitors for accessing that 'dark fibre'.
The measures were outlined in Ofcom's final statement at the conclusion of its business connectivity market review. The measures are "designed to improve BT’s performance in installing high-speed business lines" and achieve "significant reductions to the wholesale prices BT charges for these lines", Ofcom said.
Dark fibre is a term used to describe the unused additional optical cables operators which installed alongside their active network to allow for easier expansion of the capacity of their network in future.
Ofcom said: "It is appropriate in this review period to proceed with a dark fibre remedy and not to impose duct access. We consider this is the most appropriate means to manage the transition towards competition based on passive remedies."
In its statement the regulator said that BT would be required to provide dark fibre access "at the same price" as it charges for its existing price-regulated 1Gbit/s wholesale Ethernet leased line services "minus the long run incremental costs of the active elements of that 1Gbit/s service".
"We consider that this approach results in a charge consistent with the design of the controls which we are imposing on BT’s charges, which provides incentives for efficient investment for BT and for rival infrastructure operators; it incentivises use of dark fibre where it provides benefits relative to active remedies; it ensures that BT will continue to have a fair opportunity to recover its efficiently-incurred costs; and it will require limited rebalancing of charges, so that charges to more price-sensitive customers do not need to increase in nominal terms," Ofcom said.