No need to put broadband in USO agreement, says Ofcom

Ofcom's latest report has ruled out including broadband services in its Universal Service Obligation (USO). The USO defines which basic fixed-line services should be available to consumers at an "affordable price".

Under the current system, telecoms companies have an obligation to provide a basic 28.8Kbps internet connection at a reasonable price.

"This obligation relates to a single narrowband connection only. It does not extend to other types of connection such as broadband or ISDN, " the Ofcom report stated.

The watchdog believes that the broadband market is still too new to include such services in the USO, maintaining that it does not want to affect broadband providers at this stage in the industry's development.

"Retaining the existing guidelines on Functional Internet Access, including the benchmark minimum of 28.8Kbps, provides the right balance between the interests of consumers and the impact on providers," the report added.