Rival operators have called on Ofcom to make BT more transparent and less able to abuse its powerful position, especially with broadband. Similarly BT itself has also called on Ofcom to develop a more targeted regulatory regime:

The UK Competitive Telecommunications Association (UKCTA), which is made up of many of BT's rivals, claims that the former incumbent is still in a position to block effective competition in the marketplace. In its submission to Ofcom's Strategic Review of Telecommunications, UKCTA urges the regulator to devise a regulatory system that would prevent BT from abusing its dominance of the broadband sector.

UKCTA claims that BT's wholesale operation, which sells broadband services to over 100 Internet service providers, unfairly favours its retail operations over other rival ISPs.

"When BT Retail goes to market it can get what it wants, in terms of pricing and timing, from BT Wholesale in a manner that is very different from what competitors can get from the same level of BT Wholesale," claimed David McConnell, UKCTA chairman.

Strangely, it wasn't just BT's rivals calling for a change in regulation, BT itself also issued a wordy plea for regulation that encourages investment:

BT looks for regulation to encourage investment

BT today encouraged Ofcom to develop a more targeted regulatory regime that can keep pace with technological change and so ensure the UK benefits from a vibrant telecommunications industry. Central to this regime would be a clear and focused regulation of bottlenecks and barriers to entry counterbalanced by an accompanying relaxation of regulation at the retail and other downstream levels.

BT's arguments are contained in its response to Ofcom's consultation on the Strategic Review, "Investment and innovation: a competitive advantage for the UK".

The paper says the sector has undergone a revolution in the last decade and argues that a new regime has to recognise those changes whilst looking ahead to future developments such as the convergence of fixed and mobile services and the emergence of new access technologies.

Clearly everybody wants Ofcom's review to work for them; the regulator's challenge is to find the correct balance, which often means not being able to please everybody. More @ ZDNet.