BT wants more pricing flexibility for its last mile fiber services

BT (NYSE: BT) said regulatory changes are posing challenges for the telco and has asked British officials not to not apply price controls on the fiber-based broadband services it sells to competitive carriers like TalkTalk (LSE: TALK).

BT Strategy Director Sean Williams told the House of Lords Communications Committee that regulations will hamper the company's ability to make new investments in its fiber network.

"It's very difficult for us to make a long-term investment if the regulatory regime changes every three years," he said. "… If there's one thing I could ask it's not to regulate the price over an extended period of time so that there is a balance of risk."

While the service provider has continued to make progress with its fiber-based last mile Fiber to the Cabinet (FTTC) and Fiber to the Premises (FTTP) network roll outs, it said it would take about 20 years to get a return on this investment.

What's drove the service provider to ask for more regulatory freedom is TalkTalk's recent request to Ofcom to set wholesale prices in 2013.

In related news, Williams said there's no need for universal FTTP in the country, arguing that there's still a lot of life left in using hybrid fiber/copper implementations like FTTC.

"…there is no business case to support it" and that "Technological developments mean there is no need for it. FTTC is a good solution for medium and long term."

For more:
 - TeleGeography has this article
 - U Switch has this post

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