Ofcom drops broadband regulation

Wholesale broadband market will be deregulated in areas of high competition

Hull will remain regulated until competition opens up

Ofcom is dropping regulation of the wholesale broadband market across UK locations "which are served by effective competition."

Competition has matured at different rates across the UK says Ofcom, especially in large cities.

"The measure will affect those parts of the country which are now served by four or more wholesale broadband providers and where no single company has significant market power. In these areas customers are protected by the disciplines of effective competition," the regulator said in a statement.

Areas such as Hull which do not have this level of competition will continue to be regulated in order to promote retail competition.

"This requires BT and KCOM, in Hull, to provide a wholesale product to other providers on a fair and reasonable basis, thus allowing these providers to offer retail services," said Ofcom.

Ed Richards, Ofcom chief executive said, "This is a major step forward in the UK broadband market reflecting the success we have had in promoting effective competition. It shows that we are determined to deregulate wherever we can do so in a way that is consistent with the broader public interest."

Rob Barnes, head of broadband and mobiles at moneysupermarket.com, said: “The decision to deregulate 70 per cent of the wholesale broadband market is a good sign that the majority of consumers have access to greater choice and better value deals. However, there are still millions of people who don’t have this luxury."

“Although Ofcom is deregulating 70 per cent of the wholesale market it needs to focus more on the unfair regional pricing structure. To do this it needs to ensure providers accessing wholesale areas are charged a fair amount in order for the provider to then pass on the best value deal to the consumer. Ofcom's latest move might promote retail competition but millions of homes still go without access to the best deals."