O2 is considering offering broadband via fibre-to-the-home, following BT's announcement on Tuesday that 10 million homes could be connected via fibre by 2012.

BT plans to invest £1.5bn in fibre broadband, a high-speed technology that could enable download speeds of up to 100Mb/sec. O2 said it would invest in the technology, but not until Ofcom changes current regulations requiring market-dominating networks to be opened up to competitors. This can be seen as a poor incentive for fresh investment, O2 claims.

O2 told ZDNet.co.uk: "We need clear and unambiguous regulation in place before we start shelling out huge sums of money."

BT has been championing the change in regulation and other ISPs including Virgin Media are backing them.

"We strongly support BT's call for a stable regulatory environment that rewards both current and future investment. We will continue working closely with Ofcom and the government to achieve this," Virgin Media said.

See also: Mobile broadband to prompt 100Mbps rollout

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