BT Pleads For Less Regulation

by Robin Pilgrim, LawAndTax-News.com, London

13 November 2003

Speaking before the Trade and Industry select committee on Tuesday, BT chief executive, Ben Verwaayen outlined the progress made towards "Broadband Britain", and called for lighter regulation in order to further speed the process.

When the UK telecommunicaions market was deregulated, restrictions were imposed on BT which forced it to offer a wholesale version of its retail services (in order to allow other telecoms firms to compete with it), and prevented it from offering its retail products at a loss in order to undercut competitors.

However, Mr Verwaayan told the select committee that currently, BT holds approximately half of the market for broadband, with cable firms such as NTL and Telewest competing for the other half. In the retail market, he continued, BT holds a mere 25% market share, with 150 other service providers competing against it.

Explaining that these market share figures are lower than for any other former monopoly provider in Europe, the BT boss argued that the arrival of Ofcom, the industry's new regulator, should be used as an opportunity to loosen the restrictions on the former incumbent, and to introduce a lighter touch regulation regime.

Observers have suggested that the telecommunications giant's competitors are likely to resist any loosening of the rules governing the sector, especially given the fact that there have recently been calls from within the industry for tighter control of BT's wholesale broadband offering.

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