Letters: Broadband incentive

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Richard Brown, of internet service provider Wispa, suggests reducing wholesale prices will give "BT less reason to invest in rural communities" (Ofcom tells BT to cut internet wholesale charge in rural areas, 21 July). However, our decision is designed to incentivise efficient investment in newer broadband technology.

Ofcom has cut wholesale prices only for the current technology which provides "up to" 8Mbit/s services and not for "up to" 24Mbit/s services or super-fast, fibre-based broadband. This will incentivise BT Wholesale to invest in this new technology where it is efficient to do so, while encouraging competition in areas where BT is the only provider. Ofcom's decision is likely to benefit around 3m homes and businesses, mainly in rural areas, with better-value broadband.

Rhodri Williams

Director, Wales, Ofcom

• Broadband
• Internet
• Ofcom

guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

Stuart Dredge, Charles Arthur 25 Jul, 2011

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Source: http://www.guardian.co.uk/technology/2011/jul/24/ofcom-broadband-incentive
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