Out-Law News

Oftel wants BT to cut unmetered access charges for competitors


A 7% cut in BT's wholesale unmetered internet access prices has been proposed today by Oftel. The telecoms watchdog considers that BT is charging other operators too much above its own costs under the FRIACO arrangements.

David Edmonds Director General of Telecommunications said in a statement today:

"Up until now, BT's FRIACO charges to other operators to provide wholesale unmetered internet access have been based upon cost estimates. Now that FRIACO has been used for some time, Oftel has sufficient data to make an accurate calculation of BT's costs and the appropriate wholesale price.

"Oftel believes that there is room for a 7% cut in BT's wholesale charge for unmetered internet access, and operators should ultimately be able to pass some or all of this saving on to their customers.”

The proposal is open to consultation until 19 March. A final decision will be announced in the Spring.

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