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07|09|05

Ofcom publishes proposals to deregulate rules on BT’s large business calls and line pricing

Ofcom today announced deregulatory proposals to allow BT to offer large business customers bespoke prices.

Currently, BT must offer all large business customers the same published call and line charges. But under Ofcom's proposals, BT would be allowed to agree individual terms with business customers spending more than £1 million a year on telecommunications services without having to publish its prices.

Ofcom anticipates that the measures will stimulate greater competition in the fixed-line market, as well as supporting a potential reduction in BT's prices for large business customers.

Ofcom seeks to ensure that BT's competitors are able to operate on equal terms with BT. Therefore, the consultation document also proposes that before BT can introduce bespoke pricing, competitors must be able to replicate BT's services using Wholesale Line Rental and Carrier Pre-Selection products. In a separate consultation, due to close on 30 September, Ofcom is assessing whether these products are now fit for purpose.

The large business pricing consultation document is available at:

http://www.ofcom.org.uk/consult/condocs/busretail/

The proposals cover BT's business exchange line services and business inland call services at the retail level.

Ofcom also proposes that BT's bespoke prices should not fall below a price floor. Ofcom proposes that this is set at the full cost (including network and retail costs) of offering a service to a customer.

Ends.

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