But Persimmon Homes, which has applied to UK regulator Ofcom, says in its consultation (PDF here) that it wants to compete with existing operators to install fibre to nearby business and public sector premises, beyond its own housing developments.
Ofcom says it tends towards approving the application. It notes that Persimmon “plans to offer wholesale services and to make its infrastructure available for sharing”, and says this “could also help reduce additional networks or duplicate networks having to be rolled out”.
Persimmon refused to talk to Capacity about its application for code powers under UK telecoms laws. A spokesman from Persimmon Homes said via the company’s public relations agency: “While this application is being considered we are not in a position to comment.”
Ofcom says in its consultation document that “wherever available and commercially viable, [Persimmon] intends to use either wholesale services purchased from other network operators or other network operators’ passive infrastructure, to provide connectivity between its housing developments and its core network”.
It needs code powers to give it the right to build infrastructure along public highways, and “where it deploys its network away from its housing developments”.
The application says the plan to roll out fibre to the premises and fibre to the home (FTTP and FTTH) is time constrained: code powers would ensure that it is able to deploy its access networks in a timely and cost-effective manner so that services are available as purchasers move into the housing developments.
Ofcom has asked for responses to its consultation by 15 July.
The regulator says of this unusual move: “Without the application of the code, the applicant’s costs would likely be higher, and the time taken to then provide services longer. We consider that, together, these effects could impair the applicant’s business case for expanding its network.”
And Persimmon, one of the largest house-builders in the UK, needs every penny in what has become a challenging market.
Share-watching website The Motley Fool noted this week that its shares are down 27% year-on-year. “It has suffered some severe reputational damage: its homes have been accused of being low-quality, it recently paid out a £75m bonus to its departing CEO and it faces significant industry headwinds from Brexit,” says the site.
