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Oftel moves to increase consumer choice |
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BT has agreed to new retail price control arrangements which came into effect on 1 August 2002. The new system will ensure that consumers' bills will not increase, and at the same time increase consumer choice. Price controls have delivered significantly lower prices for consumers, but now that competition is increasing in the residential market, Oftel belives the time is right for a new approach. Oftel's measures are designed to boost competition and protect consumers while competition develops, and include:
The new wholesale access products could lead to a dramatic increase in competition in the provision of basic telephony services as they allow competitors to offer an alternative to BT line rental. Using these products in combination with carrier pre-selection, any competitor will be able to offer customers a complete package with one bill covering calls and line rental. Until now, the only competitors who have been able to offer an equivalent service to BT on a large scale were the cable operators, available to 50% of the population. Operators will have the opportunity to introduce innovative deals, for example flat rate fixed tariffs. Because wholesale access could lead to a dramatic increase in competition, Oftel has said that it will loosen the retail price control once wholesale access has been successfully introduced, giving BT an incentive to introduce the new products. In the longer term, the development and success of wholesale access products is likely to reduce the need for retail price controls, as competition will determine the level of the competitive price. For further information
contact Mike Galvin (tel: 020 7634 8869 / e-mail: mike.galvin@oftel.gov.uk).
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