Ref: 06/03
Date: 19 February 2003

BT has withdrawn the offer to a business customer that was the subject of a recent provisional order issued by Oftel.

BT’s response to the provisional order means it is in compliance with its licence condition to make transparent and publish information about discounts offered to customers.

BT acted within the three days set in the provisional order issued against BT by Oftel on 10 February.

Oftel issued the provisional order against BT because it had offered a substantial discount to a business customer, without making transparent and publishing the details of the discount which it is obliged to do under the terms of its licence.

Welcoming BT’s action, David Edmonds, Director General of Telecommunications said today:

"It was necessary for me to issue a provisional order action against BT because my investigation revealed that BT’s action was damaging a smaller competitor.

"I welcome the steps BT has taken to comply with its licence and the commitments it has given to ensure that similar unacceptable behaviour does not occur again.

"We will monitor implementation of BT’s commitments closely as part of our wider investigation into the use of third party agents by BT."

Note to Editors

1. The Director General’s statement on the provisional order is available on Oftel’s website at www.oftel.gov.uk/publications/licensing/2003/post0203.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. Oftel issued the provisional order following an investigation into a discount scheme offered by BT to an existing business customer. Oftel had received a complaint from Vanco UK Ltd, which was 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. Oftel issued the provisional order against BT on 10 February, as set out in press notice 04/03.

3. As long as BT continues to be in compliance with its licence condition, the Director General will not confirm the provisional order when it lapses two months after the date of issue.