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BT pricing and terms could prompt BDUK pilot scheme boycott
The likes of TalkTalk and Virgin Media have argued BT is charging too much to use its poles and ducts.
A letter signed by executives from Fujitsu, Geo, TalkTalk, Virgin Media and Vtesse Networks - seen by Computer Weekly - threatened a mass boycott of the rural high-speed broadband trials unless rates are revised.
According to the signatories, the proposed prices and terms and conditions for using BT's network of poles and ducts make it "unviable" for any other company to compete with the telecoms giant.
The correspondence, sent to communications minister Ed Vaizey, warned that failure by the government to intervene and demand a reduction in prices puts the government's target of having the best super-fast broadband network in Europe by 2015 at serious risk.
It claimed BT is planning to charge so much for access that it would be more cost effective for its counterparts to create their own duplicate duct and pole infrastructure.
The group of telecoms firms added BT's proposed rates are between four and five times higher than its underlying costs.
"We are unanimous in the belief that the BDUK competitive procurement process will lack a credible alternative to BT, should BT fail to make substantial revisions to [physical infrastructure access] product pricing," they wrote.
"This is clearly a highly unattractive situation for UK PLC and an untenable prospect both commercially and environmentally."
Ofcom, the UK's watchdog for the telecoms industry, announced in October 2010 that BT would be required to open up access to its ducts and poles in a bid to promote competition and investment in super-fast broadband.
At the time, the regulator explained its decision would enable rival ISPs to deploy the technology to parts of the country that are not included in BT's fibre network rollout plans.