Ref: 79/01
date: 29 November 2001

The lifting of regulatory controls on BT and Concert on a number of important international routes has been proposed today by Oftel.

As a result of increased competition, Oftel proposes that for the routes involved BT and Concert will only need to provide the Director General with one day's notice of price changes instead of 28 currently required, and they will no longer need Oftel's consent to price below cost. These changes will give them greater flexibility in setting prices.

Today’s announcement means that controls will have been relaxed on routes covering about 85 per cent of BT and Concert’s international call traffic in the retail and wholesale market respectively.

David Edmonds Director General of Telecommunications said today:

"Over 200 operators offer competing international calls services. BT and Concert asked Oftel to review their regulations in this market in the light of growing competition.

"BT and Concert have been subject to regulatory controls in international markets in order to encourage other competitors into the market and give consumers greater choice and value for money.

" As a result of Oftel’s review of the extent of competition, I am lifting controls on a number of important wholesale and retail routes which we have found to be effectively competitive.

"BT and Concert will have the ability to compete more effectively for the benefit of consumers and continue to put competitive pressure on international call prices.

"I am also consulting with the industry to determine an appropriate level of regulation for the remaining routes."

Oftel completed a similar review last year where it found that 26 wholesale and 23 retail IDD routes for business users were effectively competitive.

The document produced today, Competition in International Markets, presents the results of a review of the remaining routes, together with Oftel’s proposals for further reductions of regulatory controls on routes where competition is increasing but not yet fully effective.

Notes to Editors

1. Competition in International Markets is available on Oftel’s website at http://www.oftel.gov.uk/publications/pricing/idd1101.htm . 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.
2. List of wholesale IDD routes with restrictions lifted:

These 20 routes plus Malaysia, New Zealand and South Africa are the routes for which restrictions have been lifted at the retail level.