Feeds

Oftel should consider splitting BT in two say MPs

UK hits 500,000 broadband milestone

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

An influential group of MPs has called on telecoms regulator Oftel to study proposals for the break-up of BT.

A report by the Select Committee on Culture, Media and Sport yesterday highlighted a proposal from Cable & Wireless that BT's network business should be split from its other services.

If this were to happen it's argued that it would ensure free and fair competition between service retailers and encourage further price cuts.

The MPs also hit out at the regulator over the progress being made on establishing a competitive marketplace for broadband in the UK.

Said the committee: "We recommend that Oftel, and OFCOM when it takes over the responsibilities of Oftel in due course, should take serious note of criticisms of its effectiveness in establishing a competitive UK market for broadband and follow up with remedial action - taking account of the proposal to require BT's network to stand on its own as a distinct business."

A spokesman for BT dismissed the idea, saying there was no reason why its business model should be changed.

The MPs' critical report coincides with news that there are now more than 500,000 broadband connections in the UK.

In an upbeat assessment of broadband in the UK Oftel claims that with more than 20,000 broadband connections a week, the current level of growth outstrips the equivalent demand for mobile phones and dial-up Internet when they were first introduced.

And despite criticisms by the Select Committee Oftel maintains that the UK has more competition at both network and service levels than many European countries.

Oftel boss David Edmonds said that Oftel had taken action to create competition at all levels of the broadband market

"Competition has resulted in growing take up rates and falling prices.

"Oftel has promoted competition between different networks and different service providers to ensure consumers get a wide range of choice and prices," he said. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.