BT Bundle Proposed by Ofcom
It seems that the telecom watchdog of the UK, Ofcomhas decided that this is the ideal time for considering the fixed retail markets of the UK for a review. Since the previous review made by the watchdog in 2003, it is a fact that the market has evolved considerably.
Recently, a fresh consultation was launched by Ofcom with a view to dissolving the significant market power status of BT in the fixed retail market of the UK. If the consultation launch proves successful, it would end up in the removal of the remaining retail level restrictions on BT, allowing it to sell bundled services liberally.
On the other hand, it is also a fact that the fixed UK retail market has been substantially promoted following the imposition of a range of regulatory steps. A major achievement is the entry of 14 new retail narrowband suppliers in the fixed residential market since 2005.
However, today with most of the markets witnessing cut-throat competition, especially due to a wide-spread realization that BT is being restricted due to its incapability to bundle its services as Broadband packages single priced. Here as well, Ofcom is seriously planning to don the role of the rescuer.
Moreover, the creation of Openreach, separating the network of BT from its retail operations has culminated into the leveling of the playing field as per network access. It is also worth pondering the fact that Ofcom has also relieved the obligations imposed on BT at the wholesale level, which includes wholesale local loop unbundling and line rental.
The BT – Ofcom camaraderie will reach its climax when BT reaches a stage where it can bundle its services at a single price point. This would be attained through the latest trend in the market – the “triple play bundlesâ€. The power of BT to fix a single price point would obviously lend it an edge over its rivals such as Virgin Media and Sky.
