Ofcom completes BT Together Investigation

12 July 2004

12 July 2004

Ofcom today announced the completion of its Competition Act 1998 investigation into BT's retail tariff changes.

During the 15 week investigation Ofcom has assessed a large amount of evidence and information submitted by both BT and by Carrier Pre-Select (CPS) operators. On the basis of this evidence Ofcom has concluded that BT has not infringed the Competition Act by introducing its new prices and charges.

Since Ofcom's investigation started on 31 March 2004, there have been separate developments in the market for fixed-line voice services. For example, Ofcom has consulted on:

  • A wholesale local calls product bundle from BT for CPS operators connecting to local exchanges. Ofcom believes this will address the structural cost disadvantage within the CPS regime.
  • Changes to the structure of BT's Product Management, Policy and Planning (PPP) charges. PPP charges are an overhead charge paid by operators to connect to the BT network. Ofcom's proposals aim to ensure equivalence with BT for competing operators.

Ofcom is taking these steps to increase sustainable and effective competition in voice services based on infrastructure investment, and will continue to work with industry to implement its proposals.