Telecoms regulator Ofcom has axed price controls on BT’s
retail line rental and call charges, 22 years after their
introduction following the company's privatisation.
Ofcom said the competition to BT in the retail market was now
widespread and price controls imposed by the state were no longer
appropriate.
The move is part of Ofcom’s drive to reduce red tape in the
telecoms market and switch to a strategic regulatory regime.
At this year’s Communications Management Association (CMA)
annual conference, Ofcom said it would be concentrating on business
areas of the market, where price controls and regulation were still
required to deliver a level playing field for competitors.
The announcement of the removal of the BT retail price controls
comes after a public consultation on the issue.
Ofcom said that more than 10 million households and small
businesses used providers other than BT for their phone calls,
including more than four million cable customers.
Ofcom said the UK now had some of the cheapest phone costs in
the world.
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