TISC Unconvinced Over BT Break-up
Posted: 07th Apr, 2005 By: MarkJ
The Trade and Industry Select Committee (TISC) has reported on its belief that a BT break-up should only be considered as a last resort. The group of MPs behind TISC felt that the regulator (Ofcom) had also made good progress:
Said Martin O'Neill MP, Chairman of the Committee: "We reiterate our opinion that the case for forcing BT to structurally separate has not been made, and that Ofcom's pursuit of genuine equality of access is the best way forward. It may be that equality of access prompts BT to voluntarily separate; however, that is a matter for BT's management and shareholders."
Instead, TISC agreed with Ofcom that "equivalence" - which includes giving rival telcos equal access to BT's wholesale product range - is the best way forward. Bolt on the competition generated by unbundling the local loop (LLU) and things should be hunky dory.
Generally good news for BT then? Kind of. TISC wasn't too impressed with the operators area specific LLU price discounts (demand based), which many felt gives it too much control over markets economics. Will Ofcom act? More @ The Register.
Said Martin O'Neill MP, Chairman of the Committee: "We reiterate our opinion that the case for forcing BT to structurally separate has not been made, and that Ofcom's pursuit of genuine equality of access is the best way forward. It may be that equality of access prompts BT to voluntarily separate; however, that is a matter for BT's management and shareholders."
Instead, TISC agreed with Ofcom that "equivalence" - which includes giving rival telcos equal access to BT's wholesale product range - is the best way forward. Bolt on the competition generated by unbundling the local loop (LLU) and things should be hunky dory.
Generally good news for BT then? Kind of. TISC wasn't too impressed with the operators area specific LLU price discounts (demand based), which many felt gives it too much control over markets economics. Will Ofcom act? More @ The Register.
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