OFCOM to police equal access

Communications regulator Ofcom’s strategic review of BT’s part in telecommunications has ended, with BT promising to provide equal access to its network, and to set up a separate Access Services Division.

“BT has consistently abused its position over the years,” said David Macfarlane, director at carrier Sirocom, who welcomed the news that BT was to separate its access business. “Although the UK is catching up on things such as broadband, BT’s inability to come up with a decent unbundling option has limited the adoption of challenging technology.”

Ofcom chairman David Currie said in a statement that the proposals were “substantially different from traditional telecoms regulation”, demanding as they did major changes in key areas.

According to research firm Ovum, those changes will include the Access Services Division, as well as an Equality of Access Board (EAB), appointed in consultation with Ofcom but remaining a part of BT.

Tony Lavender, director of telecoms research at Ovum, and Mike Cansfield, a research director at the same firm, said in a research note that the changes would give Ofcom more power.

“Guaranteed equality of access is the real issue in the review for BT’s competitors. They will see it as a step in the right direction, but whether it goes far enough is a moot point.

“What is new is that if BT breaches its undertakings, Ofcom could take BT to the High Court, and third parties could seek damages… In short, Ofcom will have the stick to enforce equal access,” said the two analysts.