04/04/2003

Oftel calls for substantial cut in BT net charges

Prices for unmetered Internet access for consumers could fall under

proposals from Oftel which would see BT cut prices.

Oftel believes that BT should cut its wholesale charges by 17% because it is charging operators for certain call routing and call management measures that Oftel believes are "no longer technically necessary".

If implemented, BT would have to backdate the refund to December

2001 - the date from when the additional call routing and call

management measures were no longer needed.

David Edmonds, Director General of Telecommunications, said: "When Oftel required BT to introduce a wholesale unmetered Internet access product, BT introduced a number of additional measures to support the new service and which were included in the charge to other operators.

"Because BT made improvements to its network by December 2001, I

intend to require BT to backdate the refund to other operators to

this date.

"Oftel's action will ensure that operators and consumers pay a fair

price for unmetered Internet access from BT, and reflects the

relevant costs that BT incurs to provide this service."

The investigation was opened following a complaint from Cable &

Wireless, which was later supported by Energis.

(GMcG)

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