Competition is a good thing

BT has held the top spot in regard to Britain’s telecommunications infrastructure and market share since the dawn of online connectivity. Is it time for a new kid on the block to shake things up?

Cable Cowboy also known as John Malone, thinks so and we’re inclined to agree. After all, competition drives the price of goods and services down and with our customer centric approach, we encourage it!

An open marketplace means organisations can try to provide higher quality levels of service to their customers, at a lower price. In comparison, when an organisation can monopolise an industry, we often see lower quality service provided, yet higher prices incurred.

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Closing the gap

Mr Malone, the co-owner of Virgin Media O2 has entered a partnership with infrastructure fund, Infravia; piggybacking on an existing target set by Virgin Media O2 of 16m homes, bringing the total to 23m homes covered by 2026.

The venture is projected to unequivocally place them as the 2nd full-fibre network on our shores and not far behind BT. This power move will certainly incentivise BT to lower its prices, improve its products and invest in customer service, in a bid to retain its existing customers as well as attract new clientele.

The investment fund acts as a double-edged sword. An announcement was made that a key focus is the onboarding of internet providers, and the strategy will see Mr Malone and co offering a wholesale pricing agreement to lure internet providers away from their competition. Subsequently, internet providers will be better positioned to pass on savings to their customer base whether they operate in residential or commercial properties across the country.

 

With the roll out of full fibre broadband high on the government’s agenda, we have seen a spike in private investment, backing start-up broadband providers. Coupled with the push for new homes, it’s an interesting time within the sector as the race to capture market share is on!

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