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Recent News Articles

 

Thursday 25th JUNE 2015

BT aims to shut down traditional phone network to help it battle US tech giants

BT is calling on the communications watchdog to let it scrap the traditional telephone network, as part of a campaign to loosen regulations that it says will help telecoms companies compete better with US internet companies such as Apple and Facebook.

 

The telecoms giant is planning to move all domestic and business customers to internet-based voice calls within a decade, but under current Ofcom rules must continue to provide a traditional phone service.


 

Friday 12th JUNE 2015

Ofcom review could lower prices for BT business customers

Telecoms regulator opens a consultation on what price controls would apply to BT’s wholesale leased lines - Friday 12th June 2015 16:26 BST

 

Britain’s telecoms regulator Ofcom has proposed controlling the prices BT can charge for some of its high-speed business lines, following up on a review that recognised the former state monopoly’s market power.

Ofcom said it was opening a consultation on what price controls would apply to some of BT’s wholesale leased line prices, which could result in price cuts for customers in the £2bn market.

Business customers using the leased lines include consumer mobile and broadband operators as well as companies, schools, universities and libraries.
 

Photograph: Chris Radburn/PA


“Ofcom is proposing a form of charge control that aims to bring prices down to costs over a three-year period,” the regulator said in a statement on Friday. “This type of control, which is linked to inflation based on the consumer price index, provides an incentive for BT to make efficiency gains.”

BT said it believed there should be less regulation in the market, and it would be presenting its views on the proposals to the regulator.

“Businesses already have a diverse and growing choice among a large number of providers. More regulation could discourage future investment in the UK’s telecoms infrastructure,” BT said in an emailed statement.

Ofcom said its consultation would close at the end of July and it expected to publish a decision in the first quarter of next year.

The consultation is also considering how to price the opening up of BT’s leased line business network to other operators, a move that it hopes will improve competition in the high-speed data link market.

Broadband companies TalkTalk, Sky, business telecoms providers Colt and GTC, and mobile operators Vodafone, 3 and EE, said last year they wanted the business lines opened up.

 

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