Oftel has given a further boost to competition in the provision of unmetered Internet access services by setting reduced charges for Single Tandem Flat Rate Internet Access Call Origination (ST FRIACO).

This action will help other operators to compete more vigorously in the provision of unmetered Internet access services to consumers, as they will be able to accurately predict charges for ST FRIACO until 2005.

Oftel originally set charges for ST FRIACO in February 2001. However, Oftel proposed at the same time to set revised charges for ST FRIACO from 1 October 2001 and bring them within the scope of the network charge control, currently set at RPI-8.75%.

Oftel further proposed that the revised charges should be controlled because of BT's dominance in the provision of interconnection services between its local and tandem exchanges.

To reflect these proposals, in August 2001 Oftel published its Statutory Consultation on proposed modifications to BT's licence to give effect to charge controls for Single Tandem FRIACO in which it proposed to modify BT's licence to give effect to revised charges and charge controls for ST FRIACO. The revised charges were introduced from 1 October 2001 and at the same time the charge controls came into effect.

For further information contact Mike Galvin (tel: 020 7634 8869/e-mail mike.galvin@oftel.gov.uk).