BT Welcomes Dismissal Of Freeserve Complaint
BT has welcomed Oftel’s ruling that its broadband marketing strategy does not breach the Competition Act, despite a string of complaints from Freeserve.
Last October the internet service provider claimed that BT was abusing its dominance in the home phone market, by using its bills and customer service channel to market its broadband internet product (see Freeserve Files Complaint Against BT Broadband).
However, after a detailed investigation, Oftel ruled that none of BT’s marketing practises infringed competition regulations, claiming that the benefits of joint billing can easily be replicated using credit card payments or direct debit.
The communications regulator also concluded that the use of bills as a marketing channel has a relatively high cost and ruled that competitors can more specifically target likely broadband users by using direct marketing at a similar or lower cost.
Commenting on the decision, David Edmonds, Oftel’s director general of telecommunications, said: “We looked at each of the issues raised by Freeserve, and considered them in detail. In this instance we have concluded that BT’s marketing activity does not prevent Freeserve competing on a fair basis.”
Pierre Danon, chief executive of BT Retail, added: “This is the latest in a long line of complaints against us from Freeserve and another that Oftel has dismissed. I think that if I was a Freeserve customer I’d be seriously concerned about the time and money being invested in complaining to Oftel about BT.”
Earlier this year Freeserve accused BT of an “orchestrated campaign of anti-competitive behaviour” and of exploiting links with BT Openworld in an attempt to gain an “unfair” advantage over its competitors (see Freeserve Calls On Oftel To Investigate BT).
Oftel also recently undertook an investigation of BT and BSkyB for alleged anti-competitive behaviour, following a joint satellite TV and internet marketing push (see BSkyB And BT Probed Over Joint Marketing Campaign).
BT: 0207 469 2337 www.bt.com
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