Freeserve Files Complaint Against BT Broadband
Freeserve has filed a complaint with telecoms regulator, Oftel, claiming that BT’s “near-monopoly” position will stifle broadband innovation and development in the UK.
According to Freeserve, BT’s no-frills broadband offering may keep prices “artificially high” and could give the group an unfair advantage in an already crowded marketplace.
The IPS’s general counsel, David Melville, commented: “Oftel would have us believe that all is rosy in the UK’s broadband market with consumer take up now gathering pace. But market growth must not be at the expense of the true competition that created affordable narrowband internet for millions of consumers.”
He added: “If the UK truly wants to climb the worlds broadband league ladder, then more must be done to promote healthy competition and so stimulate genuine consumer choice.”
Freeserve believes that BT has unmatchable advantages because of its 70% share of the residential mobile phone market. The ISP would like to see BT banned from using telephone bills along with its customer service arm to promote broadband services. It is also requesting that BT sells its internet products via its separate business unit, BT Openworld, which is subject to strict rules on cross subsidisation and accounting separation.
Earlier this year Freeserve accused BT of an “orchestrated campaign of anti-competitive behaviour” exploiting links with BT Openworld in an attempt to gain an “unfair” advantage over its competitors (see Freeserve Calls On Oftel To Investigate BT).
The broadband market is becoming increasingly competitive and Freeserve recently announced it is to cut the cost of its high-speed internet package by 7%, following a similar move by rival AOL (see Freeserve Ups Stakes With Broadband Price Cut). Earlier this month BT also teamed up with Sky Digital to offer discounted broadband services to Sky customers (see BT Teams Up With Sky For Cut Price Broadband Promo).
Freeserve: 0845 070 0066 www.freeserve.co.uk
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