The new communications regulator Ofcom is calling for greater competition in the wholesale broadband market after concluding that BT has too much influence in the current environment.
Ofcom and Oftel, the outgoing telecoms watchdog, have this week issued a consultation paper in which they propose new regulatory obligations.
“It is clear that at this point in time there is a national and distinct market in wholesale broadband services, and that BT is the dominant provider of these services,” they said in a statement.
BT currently owns more than 50% of the market and could be forced to reduce the amount it charges other ISPs for access to broadband services.
“These proposals will address a competition deficit,” said David Edmonds, director general of Oftel. “They will bring clarity and predictability to a strategically important and distinct market, enabling other network operators to compete effectively against BT and in turn, leading to greater choice and value to the consumer.”
The number of UK households and small businesses with a high-speed internet connection recently passed the 3 million mark (see UK Broadband Connections Pass Key 3 Million Mark) but service providers allege that BT’s dominance is hindering growth (see BT Monopoly Blamed For Hampering Broadband Growth).
Speaking at this week’s launch of the latest UK Online annual report, the e-minister Patricia Hewitt expressed confidence that broadband charges would continue to fall and said that she wanted to see an internet connection in every home in five years time.
