Ref: 45/02
Date: 1 July 2002

Oftel has today strengthened its commitment to using the Competition Act to prevent anti-competitive behaviour in the telecoms industry.

The Competition Act came into force in March 2000, giving Oftel increased powers to investigate and take action against companies behaving anti-competitively.

Oftel has today published a statement on how it will generally use competition law rather than sector-specific powers when faced with behaviour that may be anti-competitive. This should provide a firm incentive on operators and service providers to improve compliance.

This is consistent with the approach set out in the new EC Directives on communications regulation which were adopted in February 2002.

David Edmonds, the Director General of Telecommunications said today:

"Appropriate regulation is at the heart of Oftel’s work. And where competition is effective I am committed to reducing regulatory intervention.

"However, where a company’s behaviour threatens competition tough measures are necessary to protect the interests of consumers.

"The Competition Act has given Oftel greater powers of investigation including the power to carry out unannounced visits and the ability to fine companies up to ten per cent of their UK turnover if they infringe the requirements of the Act.

"The statement I have published today sends a strong message to telecoms companies about the action I am prepared to take if a company behaves in an anti-competitive manner.

"It also enables the compliance team at Oftel to target its resources and deal with accusations of anti-competitive behaviour quickly and effectively."

Notes to editors

Oftel’s Competition Act Strategy is published on Oftel's website at www.oftel.gov.uk/publications/about_oftel/2002/cact0602.htm. Hard copies are available to the media from Oftel's Press Office, telephone 020 7634 8991 and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.