Call For Lifting Of Ban On BT Video Service

The House of Commons Select Committe on Trade and Industry said yesterday that BT should be allowed to offer video-on-demand and home shopping on their network before the end of the decade.

There were calls for changes in the regulatory regime for broadcasting and telecommunications, in a bid to ensure the rapid construction of such a network. Existing policy, designed to encourage investment in local cable systems by cable operators competing with BT, is for the ban to stay in place until 2001. Yesterday’s report calls for a gradual lifting of the ban over an eight year period, with a complete lifting in 2002.

Reaction to the report has been favourable; BT welcomed the recommendation, pointing out that the proposals would free BT to compete over most of the country by 1998.

The ITC has also welcomed the report, because it protects cable franchisees from full competition for long enough for them to become established. This is in line with the evidence submitted to the Committee by the ITC, which suggested that the heavy investment required was dependent on “the assurance of exclusive rights to provide cable television for the foreseeable future.” The ITC agrees that this protection should not continue indefinitely.

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