Kitz Forum

Announcements => News Articles => Topic started by: renluop on October 25, 2017, 11:05:42 PM

Title: Rural broadband deal under threat.....legal problems
Post by: renluop on October 25, 2017, 11:05:42 PM

It is suggested that scheme could be illegal for breacing state aid rules  (http://www.telegraph.co.uk/business/2017/10/24/rural-broadband-deal-threat-government-talks-openreach-hit-legal/)

Title: Re: Rural broadband deal under threat.....legal problems
Post by: Bowdon on October 26, 2017, 11:44:13 AM

I can understand the principle behind state aid rules. But it also restricts what the government can do.

From my understanding this state aid rules https://www.gov.uk/guidance/state-aid#state-aid-rules (https://www.gov.uk/guidance/state-aid#state-aid-rules) come from the EU. So in 2019 when we leave then its up to us to decide what rules we'll carry over.

Title: Re: Rural broadband deal under threat.....legal problems
Post by: WWWombat on October 26, 2017, 12:42:03 PM

Note that the original story is about any potential deal between Openreach and the government in lieu of a USO from Ofcom.

That deal would be funded by an increase in wholesale prices, but it seems that Sky at Al are unhappy with this. Presumably the "illegal state support" refers to government support for these price rises (was it 14p per month?)

Hidden away in the telegraph article is a separate issue, indicating that LR-VDSL might have died a death:

Quote

Openreach has already dramatically scaled back its ambition to use new signalling technology capable of delivering faster broadband over long rural telephone lines, after retailers complained it would elbow their own equipment out of local exchanges and damage profit margins.

It seems like a double-whammy, with some companies determined to ensure that the hardest-to-reach are left out. Or they're determined that their arch-rival be made to foot the bill alone.