Oftel responds to BT restructuring proposals

Oftel has published a short response to the Culture Media and Sport Committee's report on communications.

The committee's report, published in July, encouraged Oftel to consider calls to separate BT's network from its retail business in order to increase competition in the broadband market.

Oftel's response sets out Oftel's view that it already has the power to address anti-competitive behaviour in the broadband market.

In line with its strategy, Oftel will take appropriate action to support competition using both its current powers and new powers brought in by the Communications Bill and the Enterprise Bill.

As Oftel already has regulatory tools it needs to promote a competitive broadband market, it is not currently considering restructuring of BT as an option.

Oftel's latest benchmarking report shows that UK prices for some broadband services are now cheaper than in France or Germany, and that the UK has more competition at the wholesale.