THUS Calls For Better BT Regulation
Posted: 09th Jul, 2003 By: MarkJ
The CEO of telecoms operator THUS, Bill Allan, has called for stronger regulation to govern BT rather than a break-up (separate the network provider from the service provider):
THUS CEO calls for strong regulation of BT rather than break-up
Speaking at THUS Group plc's Annual General Meeting today, Mr Bill Allan, Chief Executive Officer, called for an end to the debate over the restructuring of BT into a separate network provider and service provider.
"The economic impact of splitting BT in two would be substantial and would be detrimental to the development of the industry. Rather than getting the regulator bogged down in complex legal and economic arguments, which may take years to resolve, the answer must surely lie in strong regulation of the incumbent.
If BT is separated into a network provider supporting many service providers, we will all be beholden to BT for service quality and for service evolution. That cannot be in the best interest of consumers. It is, for example, inconceivable that the highly competitive mobile market we now have would ever have developed in that type of environment and Vodafone would not have emerged as the world leader it is today.
The same is true of the fixed line market. Network based competition has delivered significant price reductions, service quality and new service innovations which have benefited UK business and consumers. Innovations implemented by companies such as THUS would not have come to the market with the speed they have if they were reliant on BT's network. Sustainable service innovation and competition delivers benefits to customers. And these benefits can only be realised from competitive network and services based competition."
THUS CEO calls for strong regulation of BT rather than break-up
Speaking at THUS Group plc's Annual General Meeting today, Mr Bill Allan, Chief Executive Officer, called for an end to the debate over the restructuring of BT into a separate network provider and service provider.
"The economic impact of splitting BT in two would be substantial and would be detrimental to the development of the industry. Rather than getting the regulator bogged down in complex legal and economic arguments, which may take years to resolve, the answer must surely lie in strong regulation of the incumbent.
If BT is separated into a network provider supporting many service providers, we will all be beholden to BT for service quality and for service evolution. That cannot be in the best interest of consumers. It is, for example, inconceivable that the highly competitive mobile market we now have would ever have developed in that type of environment and Vodafone would not have emerged as the world leader it is today.
The same is true of the fixed line market. Network based competition has delivered significant price reductions, service quality and new service innovations which have benefited UK business and consumers. Innovations implemented by companies such as THUS would not have come to the market with the speed they have if they were reliant on BT's network. Sustainable service innovation and competition delivers benefits to customers. And these benefits can only be realised from competitive network and services based competition."
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