Karoo Monopoly?
The lack of broadband choice has always been a good topic to grumble about in Hull, especially when everyone can point the blame squarely at one company - KCOM and its Karoo service.
An incredible amount of people seem to quote the “KC monopoly” argument and over 3,000 signatures were collected on the online petition to Government (You can read the Government’s response here)
Yet the fact of the matter is, the local broadband market is open to competition and there are no reasons preventing other ISPs (internet service providers) from setting up camp here. KCOM does not actually have any “monopoly” on the provision of services and the industry regulator, Ofcom, has said that KCOM are breaking no laws.
So where are all the other providers then?
Up until now, other ISPs have claimed it’s simply not been commercially viable for them because of the costs involved with operators using KCOM’s network, but in March, KCOM cut the cost of its network charges. They’ve even said that their new charges not only match, but are even more competitive than some of the charges BT makes for others to tap into their telephone network in different parts of the country.
I’m not seeing the flood of competitors yet but I think it is worth remembering Hull City Council’s point about KCOM’s “role in Hull as a major investor, large-scale employer and a significant local business”. It can’t be denied. What’s more, I wonder how many of those 3,000 signing the petition are grateful for Karoo’s support of the Tigers this season?
July 3rd, 2008 at 1:26 pm
Hi there,
KCOM, whom I work for, (but don’t speak for now) have been approached by other ISP’s that are never satisfied with the profits they would make from residents, and not prepared to put up the money. KCOM, conversely, have invested millions in the network; offering good phone and broadband services. KCOM’s economic record as an investor & employer are second to none.
The situation actually arises from the local councils 70 or so years ago decision, that Hull be separate from the rest of the UK’s phone network.
Since then, KCOM have made sure Hull and surrounding areas have a really good service. I have used BT and other servers, they are not that great. Karoo isn’t perfect, but if it does go wrong at least I don’t have to spend £1 per minute to call an offshore call centre who normally can’t help me.
Paul