BT Prepared To Share Network In Return For Lighter Regulation

by Robin Pilgrim, LawAndTax-News.com, London

07 February 2005

The UK's former monopoly telecoms provider, BT, last week proposed changes which would address competition charges levelled at it by Ofcom last November.

Presenting its Strategic Review of Telecommunications Phase 2 Proposals last year, the UK's telecommunications regulator warned BT that it must provide "real equality of access" to its infrastructure for rival firms, or face a Competition Commission probe.

Under the plans unveiled by BT on Thursday, a separate Access Services Division would be established with responsibility for the local loop infrastructure, wholesale broadband prices would be reduced, and faster services would be offered to BT Retail's competitors, in order to level the playing field.

According to BT, the Access Services Division, although “fenced off”, would remain within BT and would have responsibility for ensuring equal access to the services and assets associated with the local loop, the copper wires that run between telephone exchanges and households.

An Equality of Access Board, with two independent members chosen in consultation with Ofcom, would oversee its operations. This division would be able to demonstrate that every operator is treated equally and so allow regulation to be rapidly rolled back in other areas.

Speaking to reporters, the firm's Chief Executive, Ben Verwaayen suggested that:

"What we have done is that we have gone beyond what I would say our obligations were."

However, in return for offering more equal access to its local loop and wholesale broadband services, BT revealed that it wants lighter regulation, and the ability to fend off the advances of competitors without facing undue scrutiny from Ofcom.

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