Telecommunications regulator Oftel is to re-open
investigations into alleged predatory pricing by BT for its
broadband services.
The fresh investigation, which could see BT being forced to
increase its broadband prices, is in response to a ruling yesterday
(16 April) from the Competition Appeal Tribunal. It found that that
Oftel's investigation into alleged predatory pricing of BT
Openworld broadband services, following a complaint last year by
internet service provider Freeserve, was "insufficiently
reasoned".
Oftel ruled there was no evidence of predatory pricing by BT
Openworld in the growing market for broadband high-speed internet
access.
The Competition Appeal Tribunal has upheld Oftel's decision but
criticised the reasoning behind elements of its ruling, forcing
Oftel to re-examine the complaint. A new ruling must be released by
16 July. BT denies the allegations.
Freeserve complaint to Oftel over BT''s broadband policy
included allegations that there was cross-marketing between BT and
BT Openworld and predatory pricing of BT in the broadband
sector.
Over the past few years BT has been accused by rival
telecommunications companies of dragging its feet in the unbundling
of the local loop, which is crucial to the rollout of broadband
services.
Earlier this year, Oftel threatened action against BT over
alleged breaches in its pricing policy. The telecoms regulator has
issued a provisional order to BT requiring it to make public the
discounts offered to secure a contract with a key customer, IBM.
The telco, however, believes it has "done nothing wrong".