View from City Road: BT needs video signal
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Department of Trade and Industry should fast-forward a clarification of government policy on whether and when British Telecommunications can provide 'video on demand' services to its telephone subscribers.
Cable television companies have chosen the UK, by far the most deregulated telecommunications market in the world, to invest billions of dollars in fibre optic networks that can carry voice, data and video signals. It means that subscribers can have access to interactive cable television and telephone services.
BT has stood aloof from the cable revolution, handing over ownership of virtually all its franchises to the new, mainly North American operators. But cable telephone subscribers, lured by cheap calls, have doubled to 225,000 this year. At this rate of expansion analysts are expecting a serious dent in BT's gross revenues by the mid-1990's - anything between pounds 1bn and pounds 1.6bn, acording to BZW and Kleinwort Benson, before taking account of offsetting interconnection charges.
BT's response has been to make aggressive noises about providing video on demand, possibly in conjunction with BSkyB, down its own hugely under-utilised network. The cable television companies are whingeing and confusion reigns over whether BT can do this.
The Government's 1991 duopoly review said BT could not provide 'entertainment services' nationally for at least 10 years. By the 1993 BT3 prospectus this had subtly changed to 'broadcast television services'.
Recently the Independent Television Commission confirmed that while VOD may or not be entertainment it certainly is not broadcast television and needs no special licence.
The Government should let BT go ahead and cable television companies ought to pipe down. Multi-channel cable television and cheap calls would surely flourish alongside a VOD service, assuming BT is serious and not simply trying to upset the massive capital-raising plans of the cable companies.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments