Network users get great clarity on call pricing


Network users get great clarity on call pricing

Ian Grant

Network users will have greater insight into suppliers' pricing following Ofcom's decision to insist on the publication of prices lists for call termination rates.

Ofcom has also declared there is enough competition in the market for inter-exchange traffic to stop regulating prices, but it will continue to regulate BT for single transit (ST) links, ie, for interconnection between networks where direct interconnection is not economically viable.

The decisions are the result of a consultation published last September into the UK's fixed narrowband wholesale communications markets. The decisions cover the UK except for Hull.

Ofcom said it found the inter-tandem conveyance and transit (ITC/ITT) market was effectively competitive. "In relation to the ST market, we have decided that BT holds significant market power (SMP)," it said.

To remedy that power, Ofcom will require BT to provide network access on reasonable request; to not discriminate unduly; to publish a reference offer; to publish technical information; to notify charges, terms and conditions; and separate its accounting for the service.

It said it had proposed publishing call termination rates, and had had six responses. "All respondents apart from Colt were supportive of this proposal," Ofcom said. "In addition we received comments from the European Commission."

It said it had reviewed whether the proposal was still appropriate and concluded that it is. "We have therefore decided to impose this obligation," it said.

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