Existing broadband networks would be unable to cope with future bandwidth-hungry applications such as high-definition television, Ofcom has warned, as it unveiled proposals to encourage investment in ultra-fast networks.

Ed Richards, CEO, said that it was possible that companies other than BT, the former state fixed-line phone monopoly, and Virgin Media, the cable TV group, could develop what he described as Next Generation Access networks.

“Investment in Next Generation Access will represent a substantial commercial risk and the market should decide where and when it will be made. We want to ensure there are no barriers to investment and provide a clear regulatory environment which will help encourage investment.”

This dovetails with recent mood music from BT and the Government that hi-speed networks are needed for competitiveness and the capex will be encouraged by a network-friendly regulatory framework – i.e. bandwidth hungry content providers will have to pay to use the network.

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