Ofcom plans wholesale broadband deregulation

Telecoms regulator Ofcom has announced it plans to remove restrictions on the majority of the wholesale broadband market.

Regulations forcing BT and KCom to open up their networks to rival broadband providers to ensure fair competition are due to be withdrawn as the market is now "performing well".

More than 80 per cent of households in the UK have the choice of two or more wholesale broadband providers, the industry regulator said.

However, Ofcom is still planning on keeping restrictions in areas where there remains little competition, such as the 19 per cent of UK homes where BT is the only operator or areas where there are fewer than three competitors.

In addition, KCom's position as the only provider in Hull was found to give it "a dominant market position", according to an Ofcom statement.

The regulator added that it had "reached a similar conclusion in relation to BT, accordingly Ofcom will continue to protect consumers by keeping existing rules that are designed to promote retail competition in these markets".