[MIL0]

There's some confusion here as to why BT were compelled by Ofcom to open up their networks to competitors.

Ofcom wanted competition in the provision of broadband services. Other networks had built their own network backbones, but BT still had the "last mile" - the bit that connects the backbone to your house. This was a monopoly.

Ofcom gave BT a choice - either "unbundle" the last mile or allow the other networks to use the last mile. BT was unable to unbundle the last mile in the time Ofcom wanted, so BT had to let the other providers use the BT last mile.

This is why Virgin and Sky (and others) can offer broadband and phone services to everyone BT can.

It's been pretty successful - there are lots of companies that offer a range of services and BT has a profitable company (Open Reach) providing the services. Broadly a win, win.

Ofcom are unlikely to compel VM to open their network to Sky because first, VM built their own network of fibre and second, Sky is the dominate player in this market. And third - there's no restriction on where you can put a satellite - everyone could have access to Sky if they wish - VM don't have a monopoly on access to customers.

This is Sky being cheeky and trying to change the agenda and keep pressure up on VM.

You can normally tell how successful a competitor is by how much effort Sky will go to to undermine that competitor. I think the ITV share purchase, the spat about the cost of Sky channels to VM and this sort of thing shows you that Sky believe VM might actually get their act together and offer decent competition to Sky.

I've been a cable customer since NTL laid cable in my road in 1997 and they have never looked stronger in terms of customer offerings. They could do things a bit quicker (took them *ages* for V+ and it's taking them *ages* for more HD channels), but I think they will become a force to be reckoned with in 2 to 3 years time.

And Sky know that!