Mobile broadband boosts fibre diet

The rapid take-up of mobile broadband could help spur the arrival of super-fast fibre broadband networks in the UK, according to telecoms regulator Ofcom, which has set out plans for a pro-investment regulatory framework that will guarantee operators who plough cash into fibre a fair rate of return.

Speaking at a conference hosted by the UK trade association for technology, Intellect, Ofcom chief executive Ed Richards said mobile broadband's rapid rise in popularity could help encourage fixed-line operators to invest in next-generation infrastructure, so they can offer high-bandwidth products and differentiate themselves competitively to consumers.

The regulator said there has been a 'step change' towards the idea of investing in fibre in the industry from "a range of companies and organisations". Ofcom hopes a supportive regulatory framework will help keep this momentum going.

Richards said in a statement: "Our position is clear. Ofcom favours a regulatory environment for the next generation of networks and access that both allows and encourages operators to make risky investments, to innovate for the benefit of consumers and, if the risks pay off, for the benefit of their shareholders too."

"We are very clear that, if operators are going to make investments in new infrastructure, investment that is inherently more risky than developing the existing infrastructure, then they need to know that the regulatory framework will allow them to make and keep a rate of return that is commensurate with the risks they are taking," said Richards.

"And they need a time horizon that gives them a degree of assurance for a realistic period in the future; that they know, for example, that the regulator will not suddenly change the rules of the game to reduce the returns just as the rewards for the risk start to flow in," Richards said.

He added: "We want investment in a competitive environment."