01/03/2007

Replicability: the regulation of BT's retail business exchange line services | Ofcom

Replicability: the regulation of BT's retail business exchange line services | Ofcom

Ofcom is holding a consultation on whether BT can set its own pricing on certain business exchange line services to high value customers (£1m sales per annum).

Other telcos objected to this, as they still felt BT had SMP (significant market power) in this area. Ofcom has made BT change certain products so there is greater competition. Products affected are WLR (wholesale line rental), CPS (Carrier Preselect) amongst others.

This only affects a small part of the market, but they have significant spend power.

BT are making big inroads in being allowed to bunded retails products where one may susbisidise another.

BT Wholesale has been forced to maintain broadband pricing at a relatively high level to allow competition from new LLU entrants, but this is all going to change when 1.5m exchange lines are unbundled and ith will put further pressure on LLU operators.
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