Ofcom Slam BT - Anti-Competitive ADSL
Posted: 21st Sep, 2004 By: MarkJ
Ofcom has accused BT of contravening the Competition Act by charging artificially low prices for residential broadband ADSL. The news has raised fears of further ADSL price hikes, this time targeted at residential consumers:
Ofcom highlighted BT Openworld and BT Broadband as examples of packages, priced at such a low level, that smaller operators that dependent on the re-selling of services are being unfairly squeezed. BT have been invited to respond to the accusations, but the fear is that any price hikes would be passed on to the consumer.
"It's not just about price but quality of service. Our customers have a wide choice of packages and we offer good value for money. Other countries have different regulatory regimes or subsidies in place." BT spokeswoman.
The UK-Bug article appears to concentrate on BT's retail offerings as opposed to wholesale prices, although it's difficult to tell for sure and we've yet to see a proper press release.
Certainly there are many UK residential providers able to undercut BT's own prices and limits must also be factored in (caps etc.), making the outcome a little blurry.
Ofcom highlighted BT Openworld and BT Broadband as examples of packages, priced at such a low level, that smaller operators that dependent on the re-selling of services are being unfairly squeezed. BT have been invited to respond to the accusations, but the fear is that any price hikes would be passed on to the consumer.
"It's not just about price but quality of service. Our customers have a wide choice of packages and we offer good value for money. Other countries have different regulatory regimes or subsidies in place." BT spokeswoman.
The UK-Bug article appears to concentrate on BT's retail offerings as opposed to wholesale prices, although it's difficult to tell for sure and we've yet to see a proper press release.
Certainly there are many UK residential providers able to undercut BT's own prices and limits must also be factored in (caps etc.), making the outcome a little blurry.
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