Ofcom backed on deregulation of wholesale broadband market

The European commission has endorsed proposals from the communications watchdog Ofcom for the deregulation of the wholesale broadband market in some parts of the UK.

Under Ofcom's plans, regulatory obligations would be removed from areas where "strong competition" already exists. This would cover around 65 per cent of properties in the UK.

According to the watchdog, broadband is now available to 99.6 per cent of households in Britain and more than 80 per cent of consumers can choose between at least two wholesale providers. A further 65 per cent can choose from at least four providers, while some can select from up to eight.

Around 19.2 per cent of households currently have only one wholesale broadband provider in their area.

The commission has ruled that Ofcom's proposals are in line with the European Union's regulation framework and that the watchdog is justified in trying to tailor regulation to smaller sections of the national market.

Ofcom will now review consultation evidence and a final set of proposals is expected to be issued in the spring.