Giacom complaint against Kingston Communications about failure to provide Wholesale ADSL access

12 April 2006

Complainant: Giacom World Networks Limited (“Giacom”)
Complaint against: Kingston Communications ( HULL ) plc (“ Kingston ”)
Case opened: 12 December 2005
Case closed: 10 April 2006
Issue: The provision of wholesale ADSL services in the Hull area.
Relevant instrument: The obligations imposed on Kingston as a SMP provider regarding wholesale broadband network access, and in particular, SMP condition EB1 (Requirement to provide Network Access on reasonable request).

In light of the fact that Giacom and Kingston have resumed negotiations, Giacom has withdrawn its complaint. Ofcom has therefore closed the case.

Case Leader: Ruth Gibson (020 7783 4340 e-mail: ruth.gibson@ofcom.org.uk)
Case Reference: CW/00878/11/05

Text published when the case was opened

Giacom complaint against Kingston Communications about failure to provide Wholesale ADSL access

Complainant: Giacom World Networks Limited ("Giacom")
Complaint against: Kingston Communications plc ("Kingston")
Case opened: 12 December 2005
Issue: The provision of wholesale ADSL products in the Hull area
Relevant instrument: The obligations imposed on Kingston as a SMP provider regarding network access.

In May 2004, following its review of wholesale broadband access, Ofcom concluded that Kingston had significant market power ("SMP") in the market for asymmetric broadband origination in the Hull area and imposed certain requirements on Kingston (the "SMP conditions"), including the requirement for Kingston to provide network access on reasonable request.

Giacom believes that Kingston is in breach of its SMP obligation to provide network access on reasonable request by not offering a wholesale service on reasonable terms to service providers who wish to compete against Kingston's retail broadband services in the Hull area.

Giacom alleges that Kingston is not providing access on reasonable terms as Kingston's pricing is anti-competitive and prohibitive to service providers, especially considering the limited economies of scale available in the area and Kingston's SMP.

Giacom seeks a reduction in the price of Kingston's wholesale IP Line service and central connection service. It alleges that Kingston has not evaluated its own costs properly, as Kingston's pricing mirrors BT's wholesale pricing, without taking into account differences that Giacom believes exist between the two services. Giacom argues that Kingston's prices should reflect Kingston's costs of delivering wholesale broadband to service providers within the Hull area, not BT's costs of delivering wholesale broadband access across a much wider area.

Ofcom is considering Giacom's complaint.

Case Leader: Ruth Gibson ( e-mail:ruth.Gibson@ofcom.org.uk)
Case Reference: CW/00878/11/05