Channel muses Ofcom probe into BT practices

Investigation into carrier's channel practices could lead to a fairer market

Ofcom HQ: The report criticised BT for trying to stifle competition.

Industry onlookers have taken Ofcom’s investigation into BT’s channel practices as a sign that it may be prepared to focus more on levelling the business communications playing field.

Earlier this month, rival carriers Thus and Gamma Telecom lodged complaints alleging BT has contravened UK and EC competition law in selling wholesale end-to-end voice calls to resellers. BT stands accused of selling below cost in a manner designed to weaken and eliminate competition.

Ofcom recently published a report on the business communications market (CRN, 9 June), which called for a more competitive market and singled out BT for criticism. Thus’ director of government affairs, Richard Sweet, told CRN that a lack of viable competition would hinder resellers in the long run.

“We have been encouraging Ofcom to pay more attention to the business market and this is potentially encouraging. The business market has more specialised needs in terms of innovation,” he said.

Richard Bligh, Gamma’s group marketing director, also called for Ofcom’s work in the consumer space to be replicated in the business arena. “BT is both a supplier and a competitor. In and around that dual role there are certain guidelines laid down by Ofcom and we are alleging that BT has been operating unfairly,” he said.

Tom Kelly, UK managing director of BT Gold partner Logicalis, said: “I think that there have been questions about some of BT’s practices over the past few years. It does not surprise me at all that companies such as Gamma and Thus would do what they have done.”

BT has remained bullish and issued the following statement. “BT is disappointed that Ofcom has decided to investigate the wholesale calls complaints because we believe that we have acted properly throughout. We will, of course, co-operate fully with the investigation, but will defend our position vigorously,” the carried said.