Freeserve has claimed that BT is in “possible breach of the
prohibition of abuse of dominant market position.” Freeserve’s
concerns have led the company to lodge a complaint with Oftel, the
UK telecoms regulator. As a result, Oftel is to investigate whether
BT is subsidising installation costs for it’s Business 500 Plus
ADSL.
Freeserve claims that BT has indeed cut the price of installing
ADSL, it’s business broadband service, and is guilty of absorbing
the price cuts since the wholesale cost of the service has remained
static. Oftel’s investigation will determine whether the price cuts
constitute anti-competitive conduct.
Freeserve indicated a desire to “compete (with BT) on a level
playing field with broadband.”
The investigation follows a similar, recent complaint by Bulldog
Communications.
