Operators of electronic communications networks and facilities should only be required to open their infrastructure to other companies for competition reasons if they have market power, Oftel has announced today.

In a statement issued today, Oftel said that it would only take regulatory action to impose new open access regulation if the operator of the infrastructure had market power in the relevant market.

Oftel would also need to be assured that the benefits from open access regulation justify the costs, and that open access is an effective and proportionate measure to deal with the competition problem.

An open access obligation enables companies to provide communications services using the networks, services and facilities of another company.

Oftel's statement is limited to the tests that would be used to consider regulation for competition reasons. Open access may also be necessary for public policy reasons, such as ensuring the universal availability of public service broadcasting.

After applying the tests to the cable operators, Oftel has concluded that new regulatory controls on cable companies to promote competition are not currently justified.

Anne Lambert, Oftel's Director of Operations said:

"Effective competition is the single most important way to ensure consumers obtain the best possible deal in terms of choice, quality and value for money.

"Where competition is not effective, open access regulation enables competing companies to offer services to consumers using another operator's infrastructure.

"However it is also important that regulation is proportionate. Oftel's statement provides a clear and predictable framework for deciding when regulation is appropriate.

"Using these tests Oftel has concluded that it is not appropriate to impose new regulatory controls on cable companies at present. We will continue to monitor the situation in order to ensure consumers get the best possible deal."

Notes to Editors

1. Open access: Delivering effective competition in communications markets is available from Oftel's web site at www.oftel.gov.uk/publications/broadcasting/opac0401.htm. Hard copies are available to the press from Oftel's Press Office on 020 7634 8991 and to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.