BT restrictions lifted
May 23, 2008
The watchdog that looks after the telecommunications industry is to remove strict controls on how BT sells broadband in 70% of the market, after it found that BT faced competition in many areas.
BT has faced restrictions on the way it sells its broadband internet network. Ofcom required BT to guarantee access to the network for other operators, and to keep fee’s low so it doesn’t gain an unfair advantage over the market.
Ofcom has now said BT currently faces strong competition in large towns and cities. Companies such as Carphone Warehouse and BSkyB are in competition with BT.
BT will still be restricted in about 30% of the market, in particular rural areas where they have little competition.
The decision was welcomed by BT, who now say it will be easier for them to compete for contracts without the restrictions. Due to the restrictions BT has to publish prices and keep them fixed so it has been easier to undercut them. The company has seen its wholesale division struggle with increased competition, revenues have fallen 12% to £1.18bn last year.
www.bt.com
www.carphonewarehouse.com
www.sky.com
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