BT Broadband Faces Competition Commission Inquiry
BT’s Broadband business is to be placed under the microscope after Freeserve successfully appealed to the Competition Commission over complaints it made against the telecoms company in March this year (see Freeserve Calls On Oftel To Investigate BT).
The complaint, which was not upheld by industry watchdog Oftel, accused BT of capitalising on its dominant position in the telecoms market to gain an unfair advantage over rival internet service providers.
The ruling represents a landmark regulatory victory for Freeserve as it is the first time a decision by Oftel has been taken to appeal successfully. Freeserve has positioned itself as “fighting for consumer friendly broadband.” However, the ISP’s critics have suggested its standpoint is commercially motivated, and has little to do with broadband innovation.
Earlier this week a senior Government advisor criticised BT’s dominant position in the market, claiming: “The UK is sleepwalking towards a broadband monopoly, with little opportunity or incentive for innovation within the network.”
The warning, from influential Government think-tank, Demos, is included in its recent report The Politics Of Bandwidth: Network Innovation And Regulation In Broadband Britain.
The report is critical of the control BT enjoys over the broadband market and its infrastructure, claiming: “The local network remains almost entirely controlled by BT. This situation hampers innovation and runs counter to the public interest.”
It recommends that Ofcom, when it becomes fully operational, should immediately set up a review of competition in the broadband market and consider the possibility of a structural separation of BT.
BT: 0207 469 2337 www.bt.com Freeserve: 0845 070 0066 www.freeserve.co.uk
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