UK telecommunications regulator, Ofcom, has approved BT’s plan to spend £1.5 billion on a new super-fast broadband network.
In order to make the project economically viable, regulators will allow BT to set its own wholesale prices for access to the network. “Our message is clear: there are no regulatory barriers in the way of investment in super-fast broadband,” commented Ofcom Chief Executive, Ed Richards.
BT is already laying fiber-optic broadband cables between local telephone exchanges and street cabinets, bumping maximum internet bandwidth from 10-Mbps to 40-Mbps in select neighbourhoods. Now that its plan has received regulatory approval, the company expects to cover some 40% of UK households with “fiber-to-the-cabinet” access by 2012.
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