Ofcom lifts rules on BT sales
OFCOM said yesterday that it will remove the last piece of regulation that has prevented BT from selling discounted fixed-line voice, broadband and TV packages.
Other network providers – such as Virgin Media, BSkyB and Carphone Warehouse’s TalkTalk – are already able to offer reduced rates to customers who take more than one of their services.
Ofcom said it was the right time to remove one of the last restrictions on the former incumbent, 25 years after it was privatised, as it no longer had “significant market power”.
The regulator said the other providers, that together serve 12m households and small businesses, effectively compete with BT, which has 14m fixed-line customers. It added that besides increasing choice, this competition had driven down prices.
BT welcomed the announcement, saying it was good news for consumers and businesses.
“It means that BT will be competing on a more level playing field than previously,” said BT retail chief executive Gavin Patterson.
However, Ofcom said that it had concluded KCom still dominates the fixed-line market in the Hull area, and would therefore continue to be regulated.
The watchdog also said it had decided to maintain regulation in most of BT’s wholesale voice services.
Shares in BT, which were also upgraded by Credit Suisse to “outperform”, rose by 4.7 per cent to 136.13p.