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Next-generation broadband could be impaired by cheap copper services
Plum Consulting has predicted cut-price access to wholesale copper infrastructure will affect the rollout of next-generation broadband.
A report conducted by Plum Consulting, presented at a European Telecommunications Network Operators' Association (Etno) workshop, claimed the trend of decreasing charges could affect the European Digital Agenda target of delivering universal high-speed broadband by 2020.
Luigi Gambardella, executive board chairman at Etno, argued reduced copper prices will discourage investment in super-fast broadband for a number of reasons.
He explained cheaper rates would persuade more consumers to stay on copper-based products rather than switching to a next-generation service.
It is also likely to artificially reduce the amount ISPs are able to charge for fibre optic broadband and other enhanced forms of internet access, Mr Gamberdella said. This in turn could put many companies off shelling out for costly network upgrades.
Brian Williamson, David Black and Jonathan Wilby, the authors of the Plum Consulting report, called for regulation of the industry to ensure the rollout of next-generation broadband is not derailed by cut-price copper access.
They commented: "The transition from copper to fibre involves increased competition between both copper and fibre during the transition period, in addition to growing competition from wireless and cable.
"The regulatory approach needs to adapt to reflect the increased platform competition, long-term investment horizons and uncertain demand for high-bandwidth services."
Despite this stark warning, BT has outlined plans to extend the reach of its advanced copper network - offering download speeds of up to 20Mbps - to around 80 per cent of properties across the UK by 2020.
According to the telecoms giant, it will upgrade approximately 30,000 phone lines per week in an effort to reach this goal. More than 2.25 million end users already have access to the technology.
"This announcement is further evidence of BT's commitment to deliver next-generation services across the UK," remarked Cameron Rejali, managing director of products at BT Wholesale.