BT questions viability of third UK ultrafast broadband network

The development of a third ultrafast broadband network for the UK, to compete with Openreach and Virgin Media, is “highly unlikely”, according to a report commissioned by BT and submitted to the regulator Ofcom.

Ofcom is trying to improve competition with the opening up of BT’s network of underground ducts and telegraph poles for other companies to use to run their own fibre cables to homes and businesses. “A good long-term outcome would be to achieve fully competition between three or more networks for around 40 percent of premises, with competition from two providers in many areas beyond that,” the regulator said. But BT’s report, from telecoms consultancy Analysys Mason, said it would only be financially viable for a new entrant to deploy to 2 million homes, or 7 percent of the country, if it was achieving a market share of 25 percent. If a “more realistic” outcome of a 20 percent market share was achieved by the new operator, coverage would fall to a mere 4 percent, using ducts and poles.