Feeds

Ofcom proposes to free BT from price controls

Competition rules

Top 5 reasons to deploy VMware with Tegile

BT could be free to charge what it likes for phone services such as line rental and call charges if proposals to scrap 22 years of price controls get the go-ahead. Regulator Ofcom says there is now sufficient competition in the UK's telecoms sector to release BT from its price constraints and allow the market to work without regulatory intervention.

Ofcom claims that average call prices have fallen by more than half over the last ten years and that more than 10m households use telcos other than BT for their phone calls. It also points to the increased take-up of VoIP and local loop unbundling as further signs of improved competition in the UK.

"Given this, Ofcom believes it is now appropriate to consider allowing existing retail price controls to lapse as increasingly effective competition between providers continues to drive down costs to consumers," the regulator said today. "These developments are also taking place against a background of continued growth in the market for mobile services."

Although Ofcom wants to see a free for all, its proposals include some measure of protection for vulnerable groups that would stay in place until the end of 2007. If adopted, the changes would come into force from 1 August.

"More than 20 years on, sustained competition, informed customers and the rapid growth of new technology provide the necessary environment for substantial deregulation," Ofcom chief exec Stephen Carter said.

However, there are already mutterings that the decision to lift regulation on BT has come too soon and that consumers could lose out in the long run. Indeed, Ofcom will have to ensure that its deregulation of the telecoms industry is handled better than the liberalisation of the director enquiries (DQ) industry.

Last year the National Audit Office (NAO) said the regulator made a hash of deregulating the UK's service, leaving punters paying more for a service they're using less.

The report added that Ofcom could not "yet demonstrate that, overall, consumers have benefited from liberalisation". ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
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
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.