Feeds

Ofcom must answer broadband price hike charges - MP

Communications regulator mute

  • alert
  • submit to reddit

The smart choice: opportunity from uncertainty

Pressure is growing on industry regulator Ofcom over concerns that it "may have misjudged the market implications" of a recent decision that threatens to force dozens of small ISPs out of business.

Sir George Young, Tory MP for North West Hampshire, is calling on Ofcom to explain why the cost of wholesale xDSL broadband is to increase for small ISPs potentially forcing them out of business. His intervention comes amid concerns that Ofcom hasn't properly thought through proposals intended to increase competition in the broadband sector, but which have the opposite effect.

Said Sir George: "I've written twice now to Ofcom about concerns raised with me by Internet Service Providers and their representatives, asking for an early response to what seems to be a rather time sensitive situation.

"Having now had an opportunity to hear the views of BT as well as their ISP customers and others there does appear to be a prima facie case suggesting that Ofcom may have misjudged the market implications of its decision on an obscure bit of jargon called the 'margin squeeze test' and related rulings as applied to BT's pricing and product packaging in the wholesale ADSL market.

"What's happened could have a dire effect on small service providers and their customers - including in particular small firms that have built a high dependence on the web and the Internet into their business activities.

Given that (according to BT) it is Ofcom's regulatory position that has led to the price and product changes...I now regard it as very urgent to have a clear statement from Ofcom that recognises the issues brought forward by ISPs and their representative organisations and explains how the margin squeeze test and other relevant decisions and rulings are intended to benefit the industry and its customers."

No one from Ofcom was available for comment at the time of writing. ®

Related stories

New e-minister urged to intervene in broadband row
PlusNet throws broadband 'lifeline' to ISPs
BT examines broadband price cuts
'Large number' of ISPs face ruin - UKIF
ISPs tackle Ofcom over BT broadband price hike
70 UK ISPs in anti-BT uprising

Eight steps to building an HP BladeSystem

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.