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Ofcom axes BT price controls

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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