OFTEL PROPOSES TO REVOKE THE TELEPHONE EQUIPMENT DIRECTION
			34/01 18 April 2001 Oftel today proposed to remove a Direction that prevents BT from subsidising its telephone equipment business. Oftel has concluded that the Direction should be removed, as BT no longer has market power. This means that any cross subsidy would not have a material effect on competition in this market. The Direction was issued in 1995 (and amended in 1997) to prevent BT from subsidising areas of its telephone equipment business such as the sale of telephones, answer machines and faxes. Since then BT's share of this market has decreased with major high street retailers having increasing influence. David Edmonds, Director General of Telecommunications said today: "The proposal to remove this Direction is in line with Oftel's strategy to regulate only when necessary. "The Direction played an important part in establishing a more competitive market in the provision of telephone equipment which has benefited consumers by lowering prices and promoting innovation in product development. "Competition in the market has now increased to such an extent that this level of regulation is no longer appropriate. "I have therefore proposed to remove the Direction following consultation with the industry and other interested parties." Note to Editors 1. Oftel's statement A Review of the Telephone Equipment Direction is available from Oftel's website at www.oftel.gov.uk/publications/licensing/2001/ted0401.htm. Hard copies are available to the media from Oftel's press office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.