BT accused of having unfair advantage in fibre broadband market

18/11/2011

BT is being given an unfair advantage under the government-backed Broadband Delivery UK (BDUK) framework, intended to upgrade rural broadband infrastructure for residents and businesses.

Geo Networks, which is delivering superfast broadband networks across Wales, claims the market is no longer contestable and that BT does not suffer the same restrictions faced by other providers, and has withdrawn from BDUK because of its concerns.

Earlier this week, BT started selling its fibre broadband infrastructure, known as Physical Infrastructure Access (PIA), but Geo chief executive Chris Smedley claims the telecoms giant has placed unreasonable restrictions on its use.

BT has dropped its prices - claiming the cost of PIA is lower than equivalents in use across Europe - but Geo believes not enough has been done on this front.

Mr Smedley added: "The real issue is that it can only be used for providing the final drop from local exchange to a residential broadband consumer's house.

"PIA cannot be used for the far more costly task of crossing the long distances in rural areas to get to these remote communities (backhaul) - making the idea of being able to build new fibre connections within them faintly ludicrous."

Moreover, he claimed it could not connect mobile or wireless infrastructure, or to provide leased lines to businesses.

"Quite simply, our business case does not stack up because of these restrictions," Mr Smedley said, adding that BT does not suffer from these restrictions.

He advised the telecoms giant to drop these restrictions in order to encourage the uptake of PIA.

BT noted that Geo's departure was disappointing, but "hardly a surprise" given the expertise and commitment required to succeed with fibre deployment.

However, the spokesperson claimed it was "ironic" Geo was blaming BT, Ofcom and BDUK when other major players are making such good progress.

Posted by Richard Smart