Feeds

Oftel probes another BT ADSL install complaint

This time it's Freeserve that's unhappy

  • alert
  • submit to reddit

Security for virtualized datacentres

Oftel is investigating a complaint that BT is subsidising installation costs for its multi-user business class broadband service.

Freeserve lodged the complaint with the telecoms regulator earlier this month urging it to consider whether this represented an unfair cross-subsidy and breach of BT's licence.

The regulator confirmed that it has received the complaint and is investigating.

The complaint centres on cut price installation costs for BTopenworld's multi-user Business 500 Plus ADSL product which Freeserve alleges is not covered by any wholesale price reductions.

In September BT announced its intention to halve the wholesale cost of installing its popular IPStream 500 product, from £150 to £75, in the three months running up to Christmas.

BTopenworld announced it would pass on the cuts which applied to its single-user Home 500 and Business 500 ADSL products.

However, BTopenworld also extended the cut-price installation offer to its Business 500 Plus product even though there was no corresponding cut in the wholesale offering for this service.

The result was an angry letter from Freeserve in which it claims BT is in "possible breach of the prohibition of abuse of dominant market position".

Said Paul Barker of Freeserve: "We have no problem with seeing wholesale prices come down. But you have to question BT's commercial sustainability when it absorbs price cuts of this nature."

Referring to Freeserve's market dominance in the dial-up sector he added: "We killed them on narrowband - we just want to compete on a level playing field with broadband."

A spokesman for BTopenworld was not aware of the complaint but insisted that it was not guilty of cross-subsidy since the promotional funding came from within BTopenworld.

Recently, Bulldog Communications complained to Oftel that BT's wholesale cuts in installation prices is unfair to those telcos offering unbundled services.

Privately, BT is understood to be getting more and more exasperated that the regulatory process is stifling its attempts to cut prices for broadband users.

The line from Oftel is that it welcomes price cuts as long as they are not anti-competitive. ®

Related Story

BT faces probe into cut-price ADSL installs

Secure remote control for conventional and virtual desktops

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
Shades of Mannesmann: Vodafone should buy T-Mobile US
Biting the bullet would let Blighty-based biz flip the bird at AT&T
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.