BT has announced a £1.5 billion programme that will give 10 million homes access to a fibre-based broadband network with speeds of up to 100 Mbps by 2012. In the process, the communications provider has signalled its intention not to be left behind by Virgin Media that has emphasised its own fibre network in recent advertising.
Virgin will this year increase its broadband speeds to 50 Mbps, though the DOCSIS 3 technology that supports it is already capable of running at speeds in excess of 100 Mbps. Virgin CEO Neil Berkett has previously indicated that Virgin will increase its speeds further as the competitive nature of the market develops.
BT’s offer will initially start at 40 Mbps, though technologies capable of delivering speeds above 60 Mbps are currently being investigated. New build sites, such as Ebbsfleet and the Olympic Village will receive Fibre-to-the-premise (FTTP) while fibre-to-the-cabinet will be delivered to existing sites.
Before it fully commits to the investment, BT is seeking assurances from Ofcom that it will be given a “supportive and enduring regulatory environment”. BT management is concerned that having made the investment it will be forced to share its network with competitors and be unable to get the return on investment its shareholders are seeking. However, BT indicated that it remains committed to offering a wholesale product.
