BT ordered to improve broadband business

UK telecoms watchdog Oftel has ordered British Telecom (BT) to improve access to high-speed internet lines for businesses.

The telecoms watchdog said BT needed to make changes to the wholesale terms it offers other phone firms in order to "encourage greater competition and lower prices in the provision of high speed, 'always-on' internet lines to business customers".

Oftel’s direction sets out specific solutions and timescales for BT to address operators’ concerns. The watchdog said it was ordering BT to make improvements after completing the first phase of an investigation into allegations of barriers to competition.

The order covers leased lines, which provide an 'always-on' service between, for instance, two buildings belonging to one firm, as well as links known as partial private circuits (PPCs).

David Edmonds, Director General of Telecommunications said: "Leased lines are an important way of providing businesses with dedicated high speed communications services, including broadband Internet access.

"PPCs allow operators to compete with BT in the leased lines market, giving them the real potential to reduce their costs significantly - and therefore to reduce prices to end users.

"Business users in the UK already benefit from broadband prices that are lower than in other European countries such as France and Germany.

"This decision is an important part of Oftel’s work to further boost the development of broadband in the business market.

"At the moment many operators’ circuits have not been transferred to the wholesale products. I want to see a far greater take up to ensure that consumers see the full benefits of competition in the leased lines market."

BT opened up the cheaper, wholesale version of leased lines to rival telecoms providers in August last year, after a ruling from Oftel.

The watchdog said the move had boosted competition in the leased lines market and allowed other firms to cut costs "significantly".

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