| Quote from: x47c |
You have got it totally back to front.
It costs a lot of money to install LLU equipment in an exchange
To encourage operators into market 1 exchanges you need to ensure they can charge MORE to customers.
Furthermore you need to ensure the ability to charge more lasts for a considerable amount of time after they have installed their equipment.
That way the operators will have a financial incentive to go into an mk1 exchange knowing that they will be guaranteed 'excess' profits both now and until the next exchange re-evaluation by OFCOM.
This is to compensate them for their up-front capital expenses in installing the equipment in the first place.
This is why OFCOM only re-evaluate exchanges on a periodic basis usually every 3 years or so....to give the new operator time though the higher charges they make to their subscribers to re-coup their capital investment.
If an exchange was re-classified immediately LLU operators arrived the incentive for them to go there in the first place would have been removed - so those who call for this to happen do not understand the reason for the market classification. - it is essential as part of the scheme that this re-evaluation only occurs at lengthy intervals.
No, OFCOM are not a waste of oxygen as the other poster suggested.
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Well - the incentives to encourage others into rural exchanges certainly worked. Not.
OFCON has been a waste of space for many years. Whether it's overseeing Radio, TV or Telecommunications in it's various guises. They don't stand for the interest of customers - just the protecting the interests of big business. Government pretends to be interested in connecting the Nation with decent broadband and creating competition, whilst meanwhile delivering little more than an expensive monopoly to the likes of BT.
In an ideal World the clever clever discounts thrown around the place to some areas should end - to allow cheaper flat rate Broadband for all and to help those people in rural areas - sometimes just 10 or 15 miles outside of major cities so they can actually get connected in the way the Government "pretends" it wants to see.
;D. And look who they're selling to!
