Ofcom’s dark fibre rules “quashed” gifting rare win to BT

UK’s comms regulator “erred” on its leased line market definitions, CAT rules.

Kelly Fiveash – Jul 27, 2017 11:39 am | 5

Credit: NASA

BT’s turbulent year was given a brief lift on Wednesday when Ofcom was scolded for having “erred” on its dark fibre rules, which had required the telecoms giant’s Openreach unit to open its network to rival operators to help develop a new market.

Access allowing BT competitors, using their own kit, to pay only for the fibre element of the leased line from Openreach was expected to be implemented in October this year. According to BT’s annual report, it would have provided high-speed service rivals with “a dedicated, unmonitored, unlit optical fibre path between two sites up to 86km apart.”

However, judges sitting on the High Court’s Competition Appeals Tribunal (CAT) unanimously found that the UK’s communications watchdog had made a pig’s ear of its market definitions for leased lines.

The CAT didn’t offer up its rationale for the judgment, stating that it was acting swiftly “to avoid unnecessary costs from being incurred.” It said Ofcom’s decisions in three matters challenged by BT had been “quashed” forcing the regulator to rethink its plans, which were laid out in Ofcom’s business connectivity markets review.

An Openreach spokesperson told Ars: “The UK has a vibrant business connectivity market with a large, diverse, and growing choice of providers—and this decision means that future regulation, where necessary, can be placed on a sound footing.”

Openreach—which is in the process of being legally separated from BT following a lengthy row with Ofcom—sells its leased aka “Ethernet” lines to a range of customers, including rival telcos and mobile operators. And demand has been increasing, particularly among carriers whose data-hungry customers are pushing for beefier connections.

It’s unclear whether a “disappointed” Ofcom will appeal against the CAT ruling. “Once we have the tribunal’s reasoning, we will know how best to proceed in order to protect competition and consumers,” an Ofcom spokesperson told Ars. “We continue to believe that dark fibre can bring significant benefits for businesses and consumers.”