TalkTalk exec claims BT is seeking fibre broadband monopoly

Monday, September 12th 2011
David Goldie of TalkTalk argued BT is looking to become the only major player in the fibre broadband market.
TalkTalk exec claims BT is seeking fibre broadband monopoly
BT is attempting to secure a monopoly in the UK's fibre optic broadband market, according to the commercial boss of rival internet service provider TalkTalk.

Speaking to the Observer, David Goldie claimed BT's motivation "at all times" is to consider ways that it can recapture its dominant position that it lost many years ago.

"I don't think that is going to represent good value for the British taxpayer," he argued.

Under the telecoms giant's plans to develop the UK's fibre broadband infrastructure, it will plough £2.5 billion into rolling out the technology to two-thirds of homes and businesses by 2015.

However, some parties have expressed concern that BT could also secure the bulk of the £530 million of government funding set aside from the BBC licence fee to encourage the deployment of faster broadband to the 'final third' of properties. These premises are typically located in rural areas that will not be covered by private sector improvement work for commercial reasons.

Mr Goldie went on to criticise BT for so far failing to publish the interim prices it intends to charge its rivals for access to its network of ducts and poles, which can be used to lay fibre optic cables.

"Right now BT knows what its costs are but nobody else does," he added. "I look at it from the point of view of the taxpayer and the market and none of them is well served by having a bidding process that favours one party."

The TalkTalk man's comments come shortly after similar concerns were aired by Neil Berkett, the chief executive of Virgin Media.

He told the Financial Times that BT could become the only major provider of fibre optic broadband in rural regions, in a move that would damage competition and restrict innovation.

In areas where BT and Virgin Media have gone head to head, prices have fallen and speeds have increased, Mr Berkett claimed.

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