MP Pressures Ofcom - BT Price Hikes
Posted: 22nd Sep, 2004 By: MarkJ
Sir George Young, a Conservative MP, is putting pressure on Ofcom to explain why it's allowed BT to raise the cost of business broadband ADSL services in a way that could seriously damage (economically) smaller ISP's:
Said Sir George: "I've written twice now to Ofcom about concerns raised with me by Internet Service Providers and their representatives, asking for an early response to what seems to be a rather time sensitive situation.
"Having now had an opportunity to hear the views of BT as well as their ISP customers and others there does appear to be a prima facie case suggesting that Ofcom may have misjudged the market implications of its decision on an obscure bit of jargon called the 'margin squeeze test' and related rulings as applied to BT's pricing and product packaging in the wholesale ADSL market.
"What's happened could have a dire effect on small service providers and their customers - including in particular small firms that have built a high dependence on the web and the Internet into their business activities."
ISP's will no doubt appreciate the sentiment and additional publicity for their plight, although time is fast running out to correct the problem. More @ The Register.
Said Sir George: "I've written twice now to Ofcom about concerns raised with me by Internet Service Providers and their representatives, asking for an early response to what seems to be a rather time sensitive situation.
"Having now had an opportunity to hear the views of BT as well as their ISP customers and others there does appear to be a prima facie case suggesting that Ofcom may have misjudged the market implications of its decision on an obscure bit of jargon called the 'margin squeeze test' and related rulings as applied to BT's pricing and product packaging in the wholesale ADSL market.
"What's happened could have a dire effect on small service providers and their customers - including in particular small firms that have built a high dependence on the web and the Internet into their business activities."
ISP's will no doubt appreciate the sentiment and additional publicity for their plight, although time is fast running out to correct the problem. More @ The Register.
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