BT’s new fibre optic broadband network is at risk of being empty unless it can find a way to encourage its rivals to use it.
Companies like TalkTalk and BSkyB are being charged almost double the price of using BT’s copper wiring, just to use the giant’s fibre optic network.
As a result TalkTalk has gone to Ofcom to urge it to push BT to review its pricing.
“The regulatory framework today is a little too skewed to driving investment and not enough to driving competition.
“In 10 years’ time when the majority of consumers should have moved on to a superfast product the idea that I will be buying my largest product from my largest competitor is not a credible place to be,” said Dido Harding, chief executive of TalkTalk.
However, BT said that even at its current price it will take it 12 to 14 years to recoup the £2.5bn that the company has invested to upgrade and stretch out its fibre optic network.
“We are taking a long term approach and this is helping to keep prices down so that consumers will be encouraged to take up the service. Every ISP pays the same for fibre and that helps to sustain a competitive market,” said BT.
According to TalkTalk, there has been little demand for superfast broadband, having only connected 5k customers to the service. BT would disagree, however, as the provider has have 400k subscribers, nearly a quarter of which signed up in the Q1 of this year.
