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BT faces probe into cut-price ADSL installs

Bulldog growls at winged watchdog

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BT's decision to halve the cost of DSL installation from £150 to £75 is being investigated by telecoms regulator, Oftel.

According to the Times Bulldog Communications - one of the remaining telcos to be involved in local loop unbundling - is unhappy at the promotional price cut claiming it makes it even harder for other operators to offer competitively priced unbundled services.

A spokesman for BT declined to comment on the issue but confirmed that it had received an enquiry from Oftel and would comply with its requests for information.

Oftel also confirmed that it was investigating the matter but denied a report that it had "encouraged" Bulldog to make the complaint.

A spokeswoman for the winged watchdog said that oftel had merely "advised Bulldog on procedure".

BT announced its intention to cut the cost of ADSL installation - for three months from October 1 - back in September.

In the summer BT cut the cost of its wholesale DSL service by £5 a month. Oftel has not received any complaints about this price reduction and did not carry out its own investigation into the matter.

A spokesman for Oftel said: "We welcome lower prices as long as they are not anti-competitive." ®

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