Ofcom



In a major relief to BT, the Telecommunications Regulator Ofcom (Office of Communication) has decided to remove the retail price controls.



The move is taken in wake of growing competition in the voice market, where BT seems to fail to lure the customers towards its services ever since it has been privatized. The reason is that the Ofcom’s price control policy forces BT to follow a rigorous price structure.



BT was under the purview of retail price regulation for the last 22 years. Now, it would be free to cut its charges for the landline calls. It would ensure BT to give tough competition to its rivals.



VoIP is rapidly getting momentum in UK. Around 500,000 UK households and small business access VoIP services. The steady growth of VoIP services pose threat to the fixed lines. Therefore, the fixed-line service providers must bring down their prices in order to survive in the Voice market. In the light of this market scenario, the Ofcom’s decision assumes significance for BT.









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