BT: Ofcom price caps could threaten next-generation roll-out

BT has warned that Ofcom price caps imposed on its network could reduce its ability to invest in the development of next-generation broadband infrastructure.

The telecoms giant will be limited in terms of how much it can charge other internet service providers for using the BT network, meaning it may have to look to other sources to help fund its planned roll-out of fibre optic networks.

A total of £1.5 billion has been earmarked for investment in high-speed broadband networks - potentially improving the performance of such application as VoIP solutions - but the company has been hamstrung recently by a pension fund deficit that will need £525 million over the next three years to rectify.

BT recently announced plans to connect ten million UK homes with next-generation technology that could boost download speeds by a factor of five, but losses from BT Global Services could force the company to scale back its scheme.

Virgin Media is one of BT's primary competitors and recently launched a 50Mbps broadband service.