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Carphone may launch own UK fibre network
21 January 2010
Carphone Warehouse in the UK is considering building its own optical fibre network in competition with BT and other operators
Read more:
[Carphone Warehouse]
[BT]
[UK]
[Virgin Media]
[optical fibre]
[Openreach]
Comment: Charles Dunstone has always been a thorn in the side of BT: he made a withering attack on Openreach during the early days of the creation of BT’s local-loop subsidiary. Building a rival fibre network — which would compete not only withBT’s infrastructure but also with Virgin Media’s network — would be expensive and it’s hard to see how it would make a return on the investment.
UK alternative operator Carphone Warehouse is looking at rolling out its own high-speed broadband network.
Carphone’s TalkTalk unit is planning to consider options, including running its own fibre network through BT’s underground ducts.
According to Charles Dunstone, Carphone’s CEO, TalkTalk may also possibly launch a fibre-based network in a joint venture with another broadband provider.
BT may face difficulties in making a return on its £1.5 billion plan for a high-speed broadband network. To overcome this, BT needs to get wholesale deals from other providers where in they supply fast internet access to consumers.
Carphone and British Sky Broadcasting are demanding changes to BT’s fibre-based wholesale products, in part due to concerns that the proposed arrangements will not allow them to innovate sufficiently.
Carphone is on course to complete a demerger of its retail and telecoms divisions by the end of March 2010. GTB