Key changes that Oftel proposes to introduce are:
A reduction in regulation that covers the unmetered internet termination market, due to the level of competition created by the FRIACO product;
A reduction in regulation on a number of international call routes to reflect the growth in competition in UK. (Seven years ago regulation covered all international calls; the new proposals will reduce the level from 17% to 5% of calls volume);
A reduction in regulation that covers services for business customers, to allow BT to offer more bundled services and discounts. However, BT will have to offer wholesale versions of retail bundled services offered to businesses;
Maintain regulation to allow other operators to compete in the retail calls market through carrier pre-selection, indirect access and the new wholesale line rental product;
New regulation to require BT to provide a wholesale ISDN service for operators that want to compete in the business market; and
Tighter regulation to require Kingston Communications to offer wholesale unmetered internet products in order to introduce competition and choice for consumers in Hull.
David Edmonds Director General of Telecommunications said today:
"Oftel is carrying out reviews across the telecoms market, and where competition is increasing, unnecessary regulation will be withdrawn. But where competition has not yet taken off, Oftel will put in place firm regulation to support competition and protect consumers."
