Feeds

BT cuts wholesale BB charges again

Cautious welcome

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

BT has avoided a showdown with the telecoms regulator by agreeing to further cost cuts on a key wholesale ADSL product that enables rival telcos to compete with the dominant telco.

BT is to cut the cost of the end-user element of its Datastream broadband connection by 50p to £8.05, which is on top of the 70p a line reduction made earlier this year.

At the same time, BT is raising the monthly rental of its 2Mbit/s business product, IPStream Office 2000, from £38 to £43. BT's IPStream S2000 rental will also go up from £43 to £48.

The DataStream price cut comes into effect tomorrow, while the other changes will be effective from 16 October.

The significance of today's announcement lies in the nature of the two wholesale products and the row that erupted earlier this year following price cuts to IPStream.

IPStream is an end-to-end product used to provide wholesale ADSL broadband connectivity for Internet Service Providers (ISPs). Datastream allows telcos to use their own IP network to provide wholesale broadband Internet access services in competition with IPStream.

In April, BT announced it was to cut the wholesale cost of its IPStream product. However, the move was savaged by those 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 May, BT bowed to pressure from Oftel and cut the cost of its wholesale Datastream product by 70p a month, but this didn't go far enough for BT's rivals. They upped the pressure on Oftel, claiming that BT was involved in anti-competitive behaviour.

In June, Energis - backed by Tiscali and Your Communications - 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".

Today's price cut is a result of continuing dialogue between Oftel and BT following the industry complaints.

Tiscali has given a "cautious welcome" to today's news. Sergio Cellini, CEO Tiscali, UK said: "This is moving the right direction and is good news. We need to look at the overall impact but there is probably a little more movement to establish parity." ®

Related Stories

BT faces fresh Datastream complaint
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

5 things you didn’t know about cloud backup

More from The Register

next story
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Speak your brains on SIGNAL-FREE mobile comms
Readers chat to the pair who flog the tech
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?