One key element in securing investment and promoting competition is regulated pricing. We have previously expressed our belief that risky investments should be allowed to earn returns that reflect the level of risk faced when the investment is made. We recognise the risks of investing in next generation access will initially be higher than those associated with today’s access networks. There is still a large amount of uncertainty on both the demand for the very high bandwidth services as well as the technologies that can be used to deliver them. This uncertainty may diminish over time as demand becomes clearer and technologies better understood. However, while the uncertainty remains, so does the risk.
Prices for wholesale products should reflect risk and promote competition