As we covered in one of our posts some time ago, the development of the Virgin Media fibre-optic broadband network could prove to be something of a regulatory headache in the medium to longer term. Much like British Telecom is forced to allow competitors to use its own broadband network, and the future fibre-optic broadband network, there have been calls to attach such conditions to Virgin Media as well. However, there are signs that Virgin Media broadband is looking to head off any potential clash with regulators with suggestions that the company is in talks with Tiscali and O2 about letting them use its broadband network.
While the Tiscali operation has changed hands, and is now part of Carphone Warehouse, the “secret plans” to open up the Virgin Media fibre-optic broadband network, to these two competitors, should at least give the company some breathing space. However, it does seem inevitable that at some stage that the company will be forced to open up its new fibre-optic network to all elements of the UK broadband market. Whether we may then see competition on the price of wholesale broadband remains to be seen as BT has effectively had this market to itself for many many years.