mediaWays.uk.Limited and Thus plc complaint concerning BT price changes to virtual path CBR and VBrt classes of service

Complainants: mediaWays.uk.Limited and Thus
Complaint against: BT
Case opened: 14 August 2003
Issue: Allegation that BT's increase in the price of two of the three classes of virtual paths, is not objectively justified and therefore is in breach of its licence and the ATM Interconnection Direction
Relevant instrument: The Direction to resolve a dispute between BT, Energis and Thus concerning xDSL interconnection at the ATM switch under Condition 9 of the Public Telecommunications Licence granted to BT and under Regulation 6(6) of the Telecommunications (Interconnection) Regulations 1997 of June 2002 (the "ATM Interconnection Direction") as continued and enforceable under the Communications Act 2003

mediaWay and Thus' complaint relates to a price inrease of two (constant bit rate and virtual bit rate real time) of the three classes of virtual paths, which took effect on 13 August. Virtual paths (VPs) are an element of the BT wholesale Datastream product, which connects BT's network at the DSLAM through the ATM network to the point of connection with the OLO.

The complainants allege that the price increase is unjustified, as it is not due to an underlying difference in cost to BT and there is no significant difference between the three classes of VP. Further, that BT has discriminated between its own retail business and its wholesale customers as BT retail uses virtual bit rate non real time (whose price remains unaffected), therefore the price increase will only raise its competitors cost base and not its own.

Oftel is currently investigating the allegations which have been made.

Case Leader: Martin Hill (020 7634 8829 e-mail: martin.hill@oftel.gov.uk)
Case Reference: CW/00678/08/03