Virgin Media happy with Ofcom's BT decision

'Stimulates investment and encourages competition'

Virgin Media   welcomes Ofcom decision

Virgin Media has praised Ofcom's decision to allow BT to invest in a fibre-optic network – insisting the regulator's stance 'strikes a sensible balance' between the need to stimulate investment and the need for competition.

BT has been given the go-ahead by Ofcom to invest more £1.5 billion in rolling out a high-speed next-generation communications network, an area which Virgin Media is currently a distant market leader.

However, a Virgin Media spokesperson told TechRadar that the company welcomed the decision.

Sensible balance

"Ofcom's statement strikes a sensible balance between the need for need to stimulate investment in next generation broadband and the need for competition," said the spokesperson.

"Virgin Media is spearheading the UK's transition to next generation broadband with the aggressive roll-out of its ground-breaking 50Mb service.

"This, together with the pro-active migration of its existing customers to higher speeds will stimulate take-up and help the industry and policy-makers alike understand more about consumer demand for super-fast broadband.

"As the digital age gathers pace, Ofcom's statement provides a robust framework for further market-led investment."

Is it enough?

Although Virgin Media are upbeat, there has been some discussion from industry commentators over just how far the £1.5 billion investment from BT will go.

A report from the government advisory body the Broadband Stakeholder Group, back in June of 2008 suggested a sum nearer to £16 billion would be necessary to put high-speed internet in 80 per cent of UK homes.