OFCOM warns rivals over infrastructure share pricing......

General Maximus · 05-05-2011, 18:58

I just wanted to leave some positive feedback (for once) on the news update posted on the home page. I think it is great that Ofcom are going to step in and kick some ass and get things sorted out once and for all. Regardless of who is right (BT or not), I am glad Ofcom are going to step in and sort things out because then Fujitsu can crack on laying the fibre and then Virgin et al can buy it up and start expanding their service, ultimately benefiting the customer/public. Left unchecked, I am sure they would continue to bicker and disagree for months/years, holding up BB evolution in this country and ultimately, the corporations having all the power, screwing over the public who can't do anything about it whatsoever.

The future's bright...

**Chris** · 05-05-2011, 19:03

... the future's .... what colour are Fujitsu?

I detect a slap for both parties in the regulator's comments TBH. The threat to BT is they will end up with a *lot* less dosh if it's left to Ofcom, the threat to Fujitsu et al is that they won't be rolling out the network of the future any time soon if Ofcom has to go to consultation and then defend its decision in Court.

craigj2k12 · 05-05-2011, 19:07

lets not forget once they sort the above out, they will then need to apply for funding

General Maximus · 05-05-2011, 19:17

Quote:

Originally Posted by Chris

the threat to Fujitsu et al is that they won't be rolling out the network of the future any time soon

the sad thing is that BT and Virgin have already admitted than they wont make any investment in expanding their network to rural areas so you would have thought that for the sake of technology, if someone else came along and offered to do all the hard work for them that they was greatful for it. At the end of the day, what harm is it to them? Their attitude and position stinks and I think both sides are being awkward for the sake of it which is why I am glad Ofcome are stepping in, even if it does take a bit longer to sort things out.

**Chris** · 05-05-2011, 20:00

Virgin won't expand their own network to rural areas but they are prepared to buy wholesale carriage on Fujitsu's network, when and if it gets built.

The threat to BT, from Ofcom, is that it should consider lowering its sights a little as regards the price it wants to charge per pole connection or metre of duct, to somewhere closer to the price Fujitsu (and by extension, VM and TalkTalk) are prepared to pay. On the other hand, the threat to Fujitsu/VM/TalkTalk is that they should stop dragging the process out in the hope of getting a better deal when Ofcom gets involved, due to the very lengthy time frame Ofcom's involvement will bring with it.

Fujitsu will have in mind that the cash the Government has available for rural broadband is not reserved for Fujitsu's use, and if one or more other projects come along and start successfully bidding for chunks of it while Fujitsu is sat waiting for Ofcom to consult, set a price and then get taken to court over it by BT, soon enough there will be no funding and therefore no Fujitsu rural network.

General Maximus · 05-05-2011, 20:35

Quote:

Originally Posted by Chris

soon enough there will be no funding and therefore no Fujitsu rural network.

and once again it is the public that suffer because corporations are so worried about themselves that sometimes they lose sight of the greater good. Who wouldnt want the whole country on fibre?

Screw pots, get everyone on ip telephony

**Hugh** · 05-05-2011, 21:04

Companies tend not to have as one of their aims "the greater good" - that is usually superseded by shareholder value.....

Ignitionnet · 05-05-2011, 22:13

Quote:

Originally Posted by General Maximus

and once again it is the public that suffer because corporations are so worried about themselves that sometimes they lose sight of the greater good.

It's their job to be worried about themselves, or more specifically their shareholders.

In fact it's not a worry, the directors of BT have a fiduciary duty to their shareholders and can have legal sanctions applied if they fail in this.

That any private or publicly traded company sometimes loses track of the greater good is a bizarre statement. BT aren't a co-operative or charity and absolutely have to do everything within their power to get as much value from every situation as possible for their shareholders. This must be at the root of what they do, even if sometimes this value isn't immediately apparent in financial terms but is realised in less tangible ways.

pip08456 · 05-05-2011, 22:35

Quote:

Originally Posted by Ignitionnet

It's their job to be worried about themselves, or more specifically their shareholders.

In fact it's not a worry, the directors of BT have a fiduciary duty to their shareholders and can have legal sanctions applied if they fail in this.

That any private or publicly traded company sometimes loses track of the greater good is a bizarre statement. BT aren't a co-operative or charity and absolutely have to do everything within their power to get as much value from every situation as possible for their shareholders. This must be at the root of what they do, even if sometimes this value isn't immediately apparent in financial terms but is realised in less tangible ways.

Although I agree with you Igni, you've got to blame the banking fiasco for the change of perception of what companies should do.