In future, BT must charge operators in arrears for providing unmetered internet access, instead of the current arrangements where operators have to pay in advance.
The changes will apply retrospectively from the start of the Flat Rate Internet Access Call Origination ("FRIACO") service. BT will therefore have to refund to operators the additional costs they have incurred by having to make advance payments. The new arrangements should also result in savings for operators on future FRIACO payments.
David Edmonds, Director General of Telecommunications, said:
"To compete effectively with BT where it has market power, operators have to be offered fair and reasonable terms for wholesale products and services, and Oftel will always take action when necessary to ensure that this happens.
"Oftel ordered BT to provide a wholesale unmetered internet access service for operators, and we have today taken further action to ensure that operators pay for it on terms that are equivalent to those for metered services.”