BT faces 'bogeyman' if it fails to open market
By Tim Richardson

Published Friday 28th January 2005 16:43 GMT

Ofcom has once again warned that BT's failure to restructure its
business and open up its market to genuine competition would make an
enforced structural split of the company a "real possibility".

In November, Ofcom rejected calls to break up BT and instead urged the
telco to make "substantive behavioural and organisational changes" and
provide equal access to its wholesale product range. Such changes would
lead to greater competition and a better deal for consumers, said the
regulator.

But if BT fails to make the necessary changes then Ofcom warned that it
would begin an Enterprise Act market investigation, and referral to the
Competition Commission in a bid to split up the UK's former telecoms
monopoly.

With less than a week to go until BT is due to respond to Ofcom's
demands, Ofcom boss Stephen Carter told a meeting of the Westminster
eForum that the regulator remains committed to opening up the sector to
competition.

"Let me be clear. The possibility of an Enterprise Act investigation is
not simply a bogeyman to secure the façade of co-operation from BT,"
he said on Wednesday. "It is and must remain a real possibility if,
reluctantly, we conclude that true equality of access cannot be
achieved."
What if?

So, just for argument's sake, what if BT does not give the necessary
assurances that Ofcom wants? What if BT sticks two fingers up to Ofcom
and tells the regulator that it "cannot countenance the kind of
equality of access - behavioural change and product level equivalence -
that we [Ofcom] have said is essential?"

Carter said Ofcom could use existing powers to tackle each of the
outstanding issues.

"But to impose such remedies in the face of BT's active hostility...
would be a very complicated and time-consuming task. It would need to
be done case by case, product by product and market by market, with BT
having the opportunity to appeal our decisions at every stage."

And although he accepts that the use of the Enterprise Act would lead
to delays and uncertainty, "imposing real equality of access in the
teeth of sustained opposition would impose even more delay and
uncertainty and ironically would probably involve not one but several
trips to the competition commission to resolve.

"An Enterprise Act referral, whilst undesirable in many ways, would be
less undesirable than a protracted attempt to impose real equality of
access via the sector powers route," he said.

However, unleashing the "bogeyman" would not happen overnight. Not only
would Ofcom have to digest fully BT's response, with all the signs
pointing to a Spring general election Ofcom does not feel this would be
a great time to announce decisions that "could have significant market
and public policy impact".

Last weekend, BT boss Ben Verwaayen warned that more than half of UK
homes and businesses could be left without advanced broadband services
if Ofcom continues to press ahead with plans to make the UK's telecoms
sector more competitive.

Verwaayen argued that the regulator's preference for local loop
unbundling (LLU) would lead to a new digital divide with rival telcos
cherry-picking the most lucrative exchanges leaving vast swathes of the
UK without up-to-date services. ®
Related stories

Shoulda split BT up a decade ago.

"six-toes" <sixty_toes@hotmail.com> wrote in message news:1106941861.645444.98190@z14g2000cwz.googlegro ups.com...
BT faces 'bogeyman' if it fails to open market
By Tim Richardson

Published Friday 28th January 2005 16:43 GMT

Ofcom has once again warned that BT's failure to restructure its
business and open up its market to genuine competition would make an
enforced structural split of the company a "real possibility".

In November, Ofcom rejected calls to break up BT and instead urged the
telco to make "substantive behavioural and organisational changes" and
provide equal access to its wholesale product range. Such changes would
lead to greater competition and a better deal for consumers, said the
regulator.

But if BT fails to make the necessary changes then Ofcom warned that it
would begin an Enterprise Act market investigation, and referral to the
Competition Commission in a bid to split up the UK's former telecoms
monopoly.

With less than a week to go until BT is due to respond to Ofcom's
demands, Ofcom boss Stephen Carter told a meeting of the Westminster
eForum that the regulator remains committed to opening up the sector to
competition.

"Let me be clear. The possibility of an Enterprise Act investigation is
not simply a bogeyman to secure the façade of co-operation from BT,"
he said on Wednesday. "It is and must remain a real possibility if,
reluctantly, we conclude that true equality of access cannot be
achieved."
What if?

So, just for argument's sake, what if BT does not give the necessary
assurances that Ofcom wants? What if BT sticks two fingers up to Ofcom
and tells the regulator that it "cannot countenance the kind of
equality of access - behavioural change and product level equivalence -
that we [Ofcom] have said is essential?"

Carter said Ofcom could use existing powers to tackle each of the
outstanding issues.

"But to impose such remedies in the face of BT's active hostility...
would be a very complicated and time-consuming task. It would need to
be done case by case, product by product and market by market, with BT
having the opportunity to appeal our decisions at every stage."

And although he accepts that the use of the Enterprise Act would lead
to delays and uncertainty, "imposing real equality of access in the
teeth of sustained opposition would impose even more delay and
uncertainty and ironically would probably involve not one but several
trips to the competition commission to resolve.

"An Enterprise Act referral, whilst undesirable in many ways, would be
less undesirable than a protracted attempt to impose real equality of
access via the sector powers route," he said.

However, unleashing the "bogeyman" would not happen overnight. Not only
would Ofcom have to digest fully BT's response, with all the signs
pointing to a Spring general election Ofcom does not feel this would be
a great time to announce decisions that "could have significant market
and public policy impact".

Last weekend, BT boss Ben Verwaayen warned that more than half of UK
homes and businesses could be left without advanced broadband services
if Ofcom continues to press ahead with plans to make the UK's telecoms
sector more competitive.

Verwaayen argued that the regulator's preference for local loop
unbundling (LLU) would lead to a new digital divide with rival telcos
cherry-picking the most lucrative exchanges leaving vast swathes of the
UK without up-to-date services. ®
Related stories

Tear it up!

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"nick" <nick@nospam.thx> wrote in message
news:41fabb48$0$14613$ed2619ec@ptn-nntp-reader01.plus.net...

The smaller it is torn up the better.

Lets have lots of town & village telcos!

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"DH" <nomail@nospam.com> wrote in message
news:1106973505.ad8c2bd68ed7041ff50c9aa04e6506ff@t eranews...

On Sat, 29 Jan 2005 04:58:46 -0000, "DH" <nomail@nospam.com> wrote:

If somebody sorts out so I can have ADSL without a landline I'dbe
very happy!
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Please reply to the group
Replies to this address will bounce!
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On Sat, 29 Jan 2005 10:25:40 +0000, Cheeky <me@privacy.net> wrote:

how would that work then ? the L in ADSL is for line.

Would you be very happy paying £10.50 per month more for your ADSL
and not having line rental ? Why ?

Phil
Tiscali - dialup speeds at Broadband prices :-)

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