Promoting Competition in Services over Telecommunications Networks


PROMOTING COMPETITION IN SERVICES OVER TELECOMMUNICATION NETWORKS

This is Oftel's first focused attempt to address issues about the evolution of the market in telecommunication services over networks whether those services are provided by network operators or independent service providers with no network of their own. Such a review is long overdue.

Oftel's earlier consultative document Beyond the Telephone the Television and the PC sought to identify the regulatory issues related to the emergence of broadband switched mass-market services. The response was, in large part, "focus your attention on the current market in such services as on-line information, electronic data interchange and voice messaging".

There are signficant concerns from independent service providers that their needs are not being addressed effectively under the current regulatory framework. In particular, there is a concern about market distortion from anti-competitive behaviour and about the charges for the basic conveyance and switching required to transport services to the customer. Oftel has concluded that action is needed to secure a more vigorous market and as a result, better choice for the customer.

This document is a complex one. But it is also very important. Its analysis has far-reaching implications for the future evolution of the telecommunications market as well as the relationship between network operators and independent service providers. In the coming months, Oftel will be putting a great deal of effort into creating the right balance between network operators, independent service providers and their customers.

DON CRUICKSHANK


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