Ofcom to set BT price
Omnipresent Ofcom are all poised like coiled sponges to set the price at which BT will provide access to its infrastructure, so that other telecoms companies can build high-speed broadband internet networks.
Ed Richards, chief executive of Ofcom, told dithering slimeball MPs on Tuesday that he thought it would be “unlikely” that a commercial agreement on infrastructure access could be reached between BT and its competitors, so they're stepping in.
One company who will be very interested in all of this will be Fujitsu who plan to build a £2bn high-speed broadband network covering 5m homes in rural Britain, with Virgin Media and TalkTalk as flagship wholesale customers.
However, they can't do anything without BT's help, pipes and telegraph poles and, according to Fujitsu (and four other companies), BT’s proposed charges were four to five times their underlying costs. And so, they've grassed them up to the government.
In a letter to Ed Vaizey, the communications minister, the companies asked the government to intervene so that BT would have to play fair and set lower charges. The government will be keen to get Fujitsu on board as they're the only company looking at wiring up rural areas, with everyone else focusing on towns and cities.
BT say: “We are working closely with both Ofcom and industry to ensure the final prices reflect the true costs.”