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Regulator allows BT to decide charges for domestic phone services

Britain's telecoms service provider BT Group Plc. is being allowed to have its own domestic phone charges. Telecoms regulator Ofcom said Tuesday the regulations are being changed 22 years after these were imposed.

Published :
Tue, 21 Mar 2006 11:10
By : Paula Demarzio
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LONDON: Britain's telecoms service provider BT Group Plc. is being allowed to have its own domestic phone charges. Telecoms regulator Ofcom said Tuesday the regulations are being changed 22 years after these were imposed.

The regulator now feels it appropriate to allow the price controls to be withdrawn as competition among service providers are driving down the rates. It said in a statement that new technology and competition have transformed the phone services over the last 10 years.

The plan is subject to public consultation by industry players and consumer groups.

Ofcom said more than 10 million households are using services provided by companies other than BT, including more than four million households on cable networks. The average call prices have fallen by more than 50 per cent since 1996. The growth of the mobile phones market too is a factor that was considered in evolving this decision. Mobile phones accounted for a third of all voice calls made in the country from July to September 2005.

Ofcom in its statement said all phone companies, including BT, would be free to set their own prices and compete for customers in future. The proposed changes will come into force on 1 August.


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