BT’s Learning Stream Service for schools and eligible public institutions

As you will be aware, Oftel has been in discussions with the telecommunications industry for some time in relation to the provision of special tariffs for Internet access for schools, public libraries, FE colleges and citizens advice bureaux.

On Monday 3 April, BT published its price notification for a new broadband (2Mbit/s) service for these defined institutions. The service will become available on 2 May (28 days after the notice was published).

In previous cases where special tariffs have been offered by BT there has been an Oftel consultation prior to BT notifying the service. However, this is not a regulatory requirement. In this case, BT has advised Oftel that in order to have the service available as soon as possible, BT has notified the service without there being a formal consultation.

BT does not require prior approval from Oftel for any new services. However, in this case because the service has a special tariff (which is only available to certain classes of customer) Oftel has considered the tariff and its cost basis. The special tariffs do not appear to involve either undue discrimination or undue preference. According to Oftel’s current information, all of the prices appear to be above the cost floors. Consequently, Oftel does not at present consider that there is a need to undertake a full investigation of this service.

In the circumstances and without limiting any future exercise of the Director General’s discretion, Oftel considers that the service meets the regulatory requirements imposed on BT. Oftel therefore proposes to take no further action.

If you have any questions about the contents of this letter please do not hesitate to contact either Mr Alex Campbell, Regulatory Policy Directorate on 020 7634 8970, or Mr Keith Loader, Compliance Directorate on 020 7634 8793.

Yours sincerely

Neil Buckley
Project Policy Director