Oftel hint at broadband ruling in BT’s favour

UK telecoms regulator Oftel has upset budding broadband service providers by indicating that it will reject demands for cuts in BT Group’s wholesale broadband prices. Following Oftel’s review of the country’s broadband market, a number of operators - including Energis, Thus and Cable & Wireless - argued that BT’s charges for its wholesale broadband access are far too high. It looks as if their concerns have fallen on deaf ears with local press reports quoting Oftel director general Dave Edmonds as ruling out a more aggressive broadband regulatory regime. Edmonds has apparently said that a cost-based structure would discourage BT from investing in new technology whilst simultaneously making it more difficult for alternative broadband suppliers, such as satellite operators, to gain a foothold in the market. An official ruling is expected before October.