UK: Ofcom proposes rules to prevent BT monopoly

Telecoms Industry regulator, Ofcom, reported in a consultation paper released that it was considering new rules against BT to prevent it from undercutting rival firms investing in super- and ultrafast broadband.

The report, titled Wholesale Local Access Market Review, describes Ofcom’s general aim of promoting industry competition in light of BT’s “significant market power”. It claims in particular that Ofcom will be examining the potential for BT to introduce targeted discounting for its broadband products, which could prevent challengers from entering the market.

BT is Britain’s biggest domestic telecoms company, supplying broadband services to $25.3 million households in the UK.

According to Ofcom it has become concerned that BT, “might seek to prevent or reduce competitive rollout of new ultrafast networks by reducing its wholesale prices in the areas where others are starting to roll out new networks.

“These proposals are designed to encourage investment in new ultrafast networks, promote competition and protect consumers.”

Full Content: Ofcom

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