BT's recent price cuts in many of its wholesale broadband
internet services reflect cost savings achieved by BT and are not
anti-competitive, according to an announcement today from UK
telecoms watchdog Oftel. Oftel's findings mean that service
providers can now confirm their own price reductions for broadband
internet access using BT's wholesale service.
Announcing closure of the investigation into the pricing of BT's
IPStream and DataStream wholesale DSL products, David Edmonds
Director General of Telecommunications said:
"Oftel has looked very carefully at BT's new
prices following a complaint from an operator that the prices of
BT's wholesale broadband products were anti-competitive. Oftel has
found that BT's price reductions reflect the significant cut in
network and provision costs that BT has managed to achieve in order
to bring wholesale broadband internet prices down. BT can pass
these cost savings onto ISPs, who in turn can reduce their own
retail prices for broadband Internet access to consumers."
"Many ISPs have already announced their
intention to cut their broadband prices but were concerned that
Oftel would find the prices anti-competitive. Oftel's closure of
its investigation means they can now confirm these price reductions
to their customers. Oftel has always believed that effective
competition between different delivery platforms is the best way to
drive down broadband prices and increase choice for consumers."
