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Vodafone hurls sueball at Ofcom over plans to relax BT leases

Anonymous Coward
Anonymous Coward

That would mean Ofcom setting rules that would tend to create or entrench a monopoly. It means slighlly lower costs now, but in the longer term it tends to stifle innovation as it makes it always cheaper to lease than build.

To see the effects of how that plays out, look at the relatively slow progress in the rollout of FTTP. Regulation has held down last mile prices for copper access types from Openreach which means the U.K. has very good pricing on metallic broadband but the business case for investing millions or billions in fibre then becomes harder to make.

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