Feeds

BT faces fresh Datastream complaint

'Stifling competition'

  • alert
  • submit to reddit

Top three mobile application threats

MediaWays.uk - a subsidiary of German Internet outfit Telefonica - has lodged a new complaint with telecoms regulator Oftel over plans by BT to increase the cost of its wholesale broadband product, Datastream.

In June, BT was forced to reduce the price for DataStream by 70p a line following a barrage of complaints from rivals accusing it of anti-competitive behaviour.

Although the price cut was welcomed, rival operators argued that it did not go far enough.

Now, BT has told Oftel it plans to increase the cost of an element of DataStream, which MeadiaWays.uk claims will lead to an increase of around 60p a line - effectively wiping out the cut made three months ago.

Said Martin Kuetter, MD of MediaWays.uk: "BT's consistent abuse of its market power is stifling competition and placing excessive burden on the operators.

"Worryingly, Oftel's ability to keep pace and react to anti-competitive price tactics such as these is in question," he said.

BT defended the move insisting that the new costings are based on specific charges for different components rather than an aggregate cost.

A BT Wholesale spokesman said he was unable to comment on the 60p per line increase quoted by MediaWays.uk since the cost would vary depending on how operators "assembled their Datastream-based services".

In April, BT announced it was to cut the wholesale cost of its IPStream product. But the move was savaged by many in the industry who accused BT of anti-competitive behaviour, claiming that the price cuts discriminated against operators with rival networks, including those involved in opening up the local loop.

They argued the price cuts applied only to BT's wholesale IPStream product, which provides an end-to-end ADSL service solely using BT's network. The cuts did not apply to Datastream products, which use competing national networks from alternative rival carriers.

In June, BT bowed to pressure form Oftel and cut the cost of its wholesale Datastream product. However, rivals claimed this did not go far enough. One competitor, Energis, submitted a new complaint to Oftel under the Competition Act in a bid to increase the pressure on BT to loosen its "stranglehold on the [UK's] wholesale broadband market".

A spokesman for Oftel confirmed that it had received a complaint from MediaWays.uk and that it was investigating the matter. ®

Related Stories

Energis lodges new broadband complaint with Oftel
'Monopolistic' BT kicked where it hurts
BT backtracks on broadband pricing cuts
Two more telcos run to Oftel over BT BB 'margin squeeze'
Tiscali blasts BT's 'anti-competitive' ADSL price cuts

Top three mobile application threats

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.