OFTEL, the telephone company watchdog, ruled on Friday that BT must
provide the necessary services to enable other operators to supply
unmetered internet access over BT’s local network.
The Direction came to resolve an interconnection dispute between
BT and MCI Worldcom.
MCI Worldcom had requested that BT supply it with a wholesale
unmetered internet access service from the customer’s home. BT
refused, and was only prepared to offer a metered service.
Under the Direction issued on Friday, BT must agree to offer a
wholesale unmetered internet access service to MCI Worldcom and
other operators who request it by no later than 1 June 2000.
OFTEL’s decision means that other operators will be able to
provide unmetered internet access to consumers in competition to
BT’s own unmetered internet access known as Surftime.
David Edmonds, Director General of Telecommunications said
today:
"Although the UK has some of the cheapest internet access on
offer for residential consumers, OFTEL wants to see more low cost
internet access available, with a choice of tariff packages. We
have been working to encourage a range of tariffs, including
unmetered access for heavy users of the internet.
We have welcomed BT’s plans to launch Surftime, which will offer
consumers both low cost pay-as-you-go internet access and
unmetered, or flat rate, tariffs. It is vital for the UK’s vibrant
internet market that other operators and ISPs can compete fairly
and offer similar products to their own customers.
OFTEL’s decision will enable other operators and ISPs to offer
competing unmetered internet access using BT’s local network.”
OFTEL has outlined a programme of further work to develop
regulatory certainty in relation to internet access issues. Later
this year OFTEL will also carry out a major review of access to the
internet, to assess the level of competition and regulation to
ensure consumers get the best deal possible.