Feeds

BT cuts wholesale BB charges again

Cautious welcome

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

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

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
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
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
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
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

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.
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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.