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OFCOM COMPLETES 'BT TOGETHER' INVESTIGATION
12 July 2004
Ofcom today announced the completion of its Competition Act 1998 investigation
into BT's retail tariff changes.
During the 15 week investigation Ofcom has assessed a large amount of
evidence and information submitted by both BT and by Carrier Pre-Select
(CPS) operators. On the basis of this evidence Ofcom has concluded that
BT has not infringed the Competition Act by introducing its new prices
and charges.
Since Ofcom's investigation started on 31 March 2004, there have been
separate developments in the market for fixed-line voice services. For
example, Ofcom has consulted on:
* A wholesale local calls product bundle from BT for CPS operators connecting
to local exchanges. Ofcom believes this will address the structural cost
disadvantage within the CPS regime.
* Changes to the structure of BT's Product Management, Policy and Planning
(PPP) charges. PPP charges are an overhead charge paid by operators to
connect to the BT network. Ofcom's proposals aim to ensure equivalence
with BT for competing operators.
Ofcom is taking these steps to increase sustainable and effective competition
in voice services based on infrastructure investment, and will continue
to work with industry to implement its proposals.
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