By Simon Zekaria
LONDON--Sky PLC (SKY.LN) Monday said it has asked the U.K.
communications regulator to push the country's competition
authorities to launch an inquiry into the U.K. broadband market, in
another broadside against its rival, BT Group PLC (BT.A.LN).
In a statement, the pay-television giant said it believed issues
covering both competition and quality of service were sufficient
for the regulator, Ofcom, to ask the Competition and Markets
Authority, the antitrust body, to open an investigation. BT is
Sky's media services rival and the U.K.'s telecommunications
incumbent.
The company said BT's infrastructure division Openreach--which
operates and maintains BT's phone and broadband networks and which
Sky and other operators access to reach telephony and broadband
customers--has a history of under-investment which has led to
service quality problems.
Sky represents around one third of broadband customers relying
on access to the network operated by BT, it said.
In addition, Sky said it is concerned about competition in the
market for U.K. broadband services.
"Over the last decade, regulation has supported effective
competition and new entrants have challenged BT, resulting in
increased choice, lower prices and innovation for customers.
However, superfast broadband services are regulated differently and
these gains may be at risk from a reduction in competition as the
U.K. transitions to services based on the new technology," it
said.
"We believe that Ofcom should move quickly to ask the
Competition and Markets Authority to undertake a full competition
inquiry. A reference to the CMA would allow these vital issues to
be examined with increased speed and thoroughness by a body with
the powers to take whatever action should be deemed necessary,"
said Sky's chief strategy officer Mai Fyfield.
BT wasn't immediately available for comment.
Sky and BT are among operators competing for subscribers in the
U.K.'s rapidly-developing market for so-called quadruple-play
bundled services of fixed telephony, mobile telephony, Internet
broadband and TV.
Last week, the CMA referred BT's planned multi-billion dollar
acquisition of mobile operator EE--a 50-50 mobile joint venture
owned by Deutsche Telekom AG of Germany and Orange SA of
France--for an in-depth inquiry to assess its competition
effects.
BT Chief Executive Gavin Patterson said at the time that other
operators in the U.K. would be able to benefit and compete through
"highly-regulated, equal access" to Openreach and wholesale access
to EE's wireless network.
Write to Simon Zekaria at simon.zekaria@wsj.com
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