Stuart McIntosh

Group Director, Competition

21 February 2013

Focus of debate – 2007 on...

• Duct Sharing

• Co-investment models

• Sharing street cabinets

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Early Conclusions...

• Virgin Media & DOCSIS 3

• Viability of FTTH

• FTTC as near term upgrade path

• Likelihood of further competition based on

competing networks (FTTC or FTTH)

• Risk and competitive constraints

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UK Regulatory Framework (2010)...

• Reliance on ‘active’ product – Virtual Unbundled

Local Access (VULA)

• No direct regulation of VULA price

• Requirement to provide access to BT’s ducts &

poles

• Underpinned by Functional Separation and EOI

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Outcome and Outlook...

• SFBB now available to ~70% of homes in UK

• Take up by 3.5m* homes and growing strongly

• Pricing at a modest premium to current

generation broadband

• Coverage likely to extend to 90%+ homes given

Government support

* December 2012

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Current Regulatory Focus...

• Market Review – to be completed by March 2014

• EC Recommendation on costing and non-

discrimination

• Key issues include: - guidance on margin squeeze issues

- appropriateness of price regulation

- evolution of regulated product (VULA)

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