Ref: 46/02
Date: 17 July 2002

Oftel has today published a short response to the Culture Media and Sport Committee report on communications.

The committee’s report included a recommendation that Oftel should take note of calls to separate BT’s network from its retail business, in order to increase competition in the broadband market.

In its response, Oftel has stated that it has sufficient powers to deal with any potential anti-competitive behaviour in the broadband market.

Oftel will take whatever decisions are justified to support proper competition using both current and new powers under the Communications Bill and the Enterprise Bill.

Because Oftel has sufficient regulatory powers to develop a competitive broadband market, the option of breaking up BT is therefore not on its current agenda.

Competition in the broadband market continues to increase, with prices cheaper in the UK than in France or Germany. The UK is on course for 750,000 broadband connections by the end of July.

Note to Editors

1. A copy of Oftel’s response to the Culture Media and Sport Committee report on communications is available on Oftel’s website at www.oftel.gov.uk/publications/oftel_response/2002/dcms0702.htm.