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Allegation
of margin squeeze in relation to BT's Midband product
Complainant: The complainant wishes to remain anonymous
Complaint against: BT
Case opened: 11 June 2003
Case closed: 31 July 2003
Issue: Allegation of margin squeeze
Relevant instrument: Chapter II of the Competition Act
1998 (abuse of dominant position)
Oftel is currently
consulting on a market review of the fixed narrowband, wholesale
exchange lines, call origination, conveyance and transit markets.
Oftel believes that the issues raised in this market review are
relevant to the issues raised by this complaint and will, therefore,
take forward consideration of these concerns in the context of
that market review. As a matter of administrative priority therefore
Oftel is closing the Competition Act case.
Nothing, however,
prevents Oftel from investigating this issue again in the future
should the complainant wish to resubmit the complaint once the
market review has been completed, taking into account the findings
of that review
Case Leader:
Naaz Rashid (020 7634 8849 e-mail:
naaz.rashid@oftel.gov.uk) Case Reference: CW/00621/05/03
Text
published when case opened
Allegation
of margin squeeze in relation to BT's Midband product
Complainant:
The complainant wishes to remain anonymous
Complaint against: BT
Case opened: 11 June 2003
Issue: Allegation of margin squeeze
Relevant instrument: Chapter II of the Competition Act
1998 (abuse of a dominant position)
Oftel has
received a complaint from an operator about BT's new Midband product
launched on 1 June 2003. BT Midband offers internet access over
ISDN2 at speeds of up to 128kbit/s. The product is based on HomeHighway
and includes up to 150 hours of internet access. Voice calls and
internet calls can be made simultaneously (although access to
the internet falls to 64kbit/s).
It has been
alleged that BT is abusing its dominance in the upstream market
for ISDN2 lines to damage competition in the relevant downstream
market by operating a margin squeeze that excludes others from
competing with this service.
Oftel is investigating
these allegations under the Competition Act.
Case Leader:
Naaz Rashid (020 7634 8849 email:naaz.rashid@oftel.gov.uk)
Case Reference: CW/00621/05/03
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