Oftel, the telecoms industry watchdog, has announced its initial
findings from a review of competition within the internet
connectivity market, the market for the network link between ISPs
and the internet. It believes that the internet connectivity market
is effectively competitive.
The review was carried out in response to a request from BT to
reduce regulatory obligations that apply to wholesale dial-up
internet services because it believes that the relevant markets are
now competitive.
Oftel said that, before a final decision can be taken on whether
to remove regulation on these services, competition in the markets
for wholesale call origination and internet call termination still
have to be assessed.
Oftel claims that the market for internet connectivity is
“effectively competitive”. Oftel is now consulting on its initial
conclusions and says it will consider responses as part of its
competition review of dial-up internet access. Its review is due
for publication at the end of this year.
