Ref: 94/00
Date: 27 November 2000

Oftel today confirmed that it has launched an investigation into the pricing of BT's proposed BT Surf Together and BT Talk and Surf Together packages under the Competition Act 1998.

On 2 November BT notified to Oftel a number of price changes and new packages for residential customers, intended to come into effect on 1 December. These included packages offering unmetered voice and Internet access calls.

This investigation by Oftel under the Competition Act is limited to the pricing of the packages involving unmetered Internet access.

Oftel welcomes lower prices for consumers. However consumers’ interests are best served by effective competition. Oftel must ensure that these proposals from BT do not undermine effective competition.

Note to editors

The price changes notified related to a number of tariffs forming part of the "BT Together" packages. The "BT Surf Together" and "BT Talk and Surf Together" revised tariff packages include both voice telephony and Internet "SurfTime" elements. The Director suspects that the manner in which BT is proposing to recover its costs of providing the "SurfTime" elements of these tariff packages may constitute an infringement of the Prohibition in Chapter II of the Competition Act 1998 (Prohibition on abuse of a position of market dominance).

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