UK communications regulator Ofcom has proposed control on the wholesale prices charged by BT for products using leased telecoms lines. The proposed controls come after Ofcom concluded that BT had significant market power in a number of wholesale leased line services, and that charge controls should be imposed in the relevant markets to protect purchasers of these products. It has now published a consultation to identify the proposed level for those price controls. Continue reading
The leased line market which is worth some £2bn per annum across all providers, while not of immediate interest to the average consumer, does influence the amount of capacity available through data centres and backhaul for providers. Ofcom has launched a consultation, which runs until 24th August. The full conclusions will be published in 2013, but Ofcom will outline proposed pricing that BT can charge in the coming weeks.
London was already seen as a competitive place for leased line services, and the amount of competition is such that Ofcom is proposing extending the area of London where it believes BT does not have significant market power out towards Heathrow. The consultation is looking at allowing BT more freedom in setting prices in the London area, where competition is high. Continue reading