Thursday, November 18, 2004

Resource update - OFCOM strategic review, phase 2

UK super-mega-uber-ultra-regulator OFCOM has released the much-awaited and widely leaked Phase 2 document today. It's a lot to digest (brevity is not one OFCOM's virtues), but it's a complicated issue. Personally, I started with Annex O, case studies from other markets, because I thought it would be interesting to see what OFCOM makes of markets like Korea, the US and France in particular. My oft-stated thesis is that the UK DSL market goes the way of France over the next year. Therefore, I was interested to see quotes like the following:

"The French experience with local loop unbundling gives some cause for optimism.
The success of Iliad suggests that (all other things being equal) the entry of a
strong player with a fully differentiated product in the UK could have
realistic expectations to quickly grow its subscriber base. OFCOM's recent
action on LLU pricing is not too far behind similar action by ART, and on this
basis some similar market growth may emerge in the next few months."

There is a conference call with analysts/press later today, which may be interesting. More to come.

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