The UK telecoms regulator, responding to calls from the House of
Commons Culture, Media and Sport Committee, has claimed that it has
no plans to separate BT’s network from its retail business. The
parliamentary committee published a report in May, which
recommended that Oftel should consider breaking up BT in order to
increase competition in the broadband market.17 Jul 2002
Oftel responded that it has sufficient powers to deal with any potential anti-competitive behaviour in the broadband market, and added in a statement:
“Competition in the broadband market continues to increase, with prices cheaper in the UK, than in France or Germany. The UK is on course for 750,000 broadband connections by the end of July… The option of breaking up BT is therefore not on its [Oftel’s] current agenda.”
Oftel has recently ordered BT to open up its network to companies wanting to offer fast internet connections, following complaints from Thus and Energis. BT owns almost all networks between homes and small businesses, but now competitors will have the opportunity to offer services by using both their own networks and BT’s.