Ref:04/03
Date: 10 February 2003

David Edmonds, Director General of Telecommunications has today issued a provisional order against BT as it appears that BT has breached its licence by failing to make transparent and publish information about a discount it offered to a customer.

The order compels BT to abide by condition 54.9 of its licence, which requires BT to make transparent the offer of any discount scheme to its customers.

The provisional order has been issued following a complaint Oftel received from Vanco UK Ltd in December 2002.

Vanco complained that they were in the final stages of securing a contract with a large retail customer whose telecoms services were provided by BT.

Vanco alleged that when BT learnt of the Vanco contract, it effectively introduced a substantial discount to the customer via an indirect sales channel.

David Edmonds, Director General of Telecommunications said today:

"It appears to me that BT has effectively offered a discount scheme to a customer which is not transparent and has not been published, contrary to the conditions of its licence.

"It is my duty to ensure that BT complies with its licence and I have therefore acted quickly to protect consumers.

"As this case raises wider questions about the use of indirect sales channels and the way in which BT offers discounts to business customers, I also intend to investigate this broader issue further."

Notes to editors:

1. A copy of the provisional order is on Oftel's website at www.oftel.gov.uk/publications/licensing/2003/order0203.htm. Hard copies are available to the press from the press office on 020-7634 8750 and to the public from the Research and Information Unit on 020-7634 8761.

2. BT has three days to comply with the provisional order.

3. The Director General will either confirm the provisional order, or allow it to lapse, two months after the date of issue.