Ofcom’s UK digital communications review: BT can keep Openreach (for now…)

On 25 February 2016 Ofcom published its initial conclusions from its strategic review of the UK’s digital communications market. Whilst much of the headline press coverage has focused on BT being able to retain Openreach, provided its governance is reformed, Ofcom’s review goes much wider than the regulation of Openreach and sets the strategic direction for UK …

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Regulatory uncertainty casts shadow over otherwise positive results from BT and Vodafone

Positive results out yesterday from both Vodafone and BT. One fact that caught my eye was the news from BT that (for the first time I can remember), BT had a net increase in connections. It’s is very old news that voice has migrated to mobile (if your fixed line rings, chances are it is …

Read moreRegulatory uncertainty casts shadow over otherwise positive results from BT and Vodafone

UK wholesale broadband access proposed charge control: Ofcom estimates BT’s weighted average cost of capital downwards to between 8.5% and 10%

Ten days ago Ofcom published a lengthy consultation on charge control for Wholesale Broadband Access, accompanied by a report from the Brattle Group on BT’s equity beta. Wholesale broadband access is the ‘current generation’ (i.e. primarily DSL) wholesale broadband access products sold by BT to its retail competitors. Ofcom’s most recent review of this market geographically segmented the …

Read moreUK wholesale broadband access proposed charge control: Ofcom estimates BT’s weighted average cost of capital downwards to between 8.5% and 10%