Feeds

BT cuts wholesale BB charges again

Cautious welcome

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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

Internet Security Threat Report 2014

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.