British telecom firms call for curbs on BT’s business broadband market monopoly

25 Nov 2014

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Leading British telecom firms have jointly called  on broadband regulator Ofcom to curb BT's business broadband market monopoly, The Telegraph reported.

The UK Competitive Telecommunications Association (UKCTA) said that other companies should be allowed to lay their own cables in BT ducts and use their own equipment in order to improve service and boost innovation.

UKCTA, which has members such as Sky , EE, TalkTalk, Virgin Media and Vodafone, said that Ofcom ''has now moved from competition to intrusive sector-specific consumer protection measures, often duplicating general consumer protection measures. UKCTA calls on Ofcom to return its focus to championing competition, which will drive innovation and enhance choice and the protection of consumers.''

According to the coalition, the legal separation of Openreach, which managed the national telecoms network, had not only delivered falling prices and rising speeds for consumers, but had also allowed BT to suppress competition.

Also, the telecom firms claim that Openreach's business connectivity monopoly had hit innovation and its poor record on responding to new line orders and fixing faults had harmed them.

According to the report prepared by telecoms consultants for UKCTA, Openreach had also failed to meet some of its performance targets in five years.

The group argues that although the legal separation of Openreach – the highly profitable division that managed the national telecoms network – had delivered falling prices and rising speeds for consumers, BT had been allowed to restrict competition in the business market.

According to the group, Openreach's control of business connectivity had stifled innovation and and its poor record on responding to new line orders and fixing faults had harmed them.

A report by telecoms consultants for UKCTA said Openreach had never met some of its performance targets in five years.

Both companies seeking to compete with BT to sell high-capacity data links to big business and consumer broadband providers, who relied on such services from Openreach to connect their customers were affected by the issue.

A UKCTA spokesman called on Ofcom to turn its focus to championing competition, which would drive innovation and enhance choice and the protection of consumers.

A BT spokesman rebutted the attack saying the market was ''vibrant'' and that recent Ofcom data clearly showed growing competition, which, if anything, supported the case for further deregulation.

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