Ofcom considers BT 'dominance'

[Zee]

Telecoms watchdog Ofcom is probing BT's dominance and pricing in the superfast broadband market after a complaint from a rival.

TalkTalk Telecom Group (TTG) complained to the regulator that BT had been "abusing its dominant position... in relation to the supply of superfast broadband", following a public spat between the two telecoms firms.

If Ofcom rules against it, BT could be forced by the regulator to raise prices for households, cut wholesale prices for the likes of TalkTalk or pay a fine

http://money.aol.co.uk/2013/05/02/of...-bt-dominance/

So basically customers will suffer by having their bills increased because TalkTalk just cant hack it that their service is complete crap and customers are looking elsewhere?

[craigj2k12]

Originally Posted by Zee

So basically customers will suffer by having their bills increased because TalkTalk just cant hack it that their service is complete crap and customers are looking elsewhere?

Sounds like it

[Chrysalis]

I have lots of issues with this complaint.

1 - talktalk isnt a small isp, they are a big player. Ofcom shouldnt be treating them as some minno that BT is trampling on because they are not that.
2 - plusnet is actually cheaper than infinity, and sky has managed to be competitive.
3 - talktalk trashed the adsl market years ago when they gave out free broadband, clearly a lossleader, now they take offense of someone else charging less than them.
4 - I am not a fan of BT but to me BT is the one who spent the cash on FTTC, talktalk are just piggybacking of it so it seems fair BT do have a market advantage for that reason alone, if talktalk dont like paying a wholesaler they can of course deploy their own local loop.
5 - The last complaint of this nature led to speed differential pricing been dropped which to me was an aweful move (one price fits all adsl max services), this could potentially make BT retail ditch their 40/10 product.
6 - As a infinity customer my bill may go up for no reason other than talktalk's complaint.

[craigj2k12]

Originally Posted by Chrysalis

I have lots of issues with this complaint.

1 - talktalk isnt a small isp, they are a big player. Ofcom shouldnt be treating them as some minno that BT is trampling on because they are not that.
2 - plusnet is actually cheaper than infinity, and sky has managed to be competitive.
3 - talktalk trashed the adsl market years ago when they gave out free broadband, clearly a lossleader, now they take offense of someone else charging less than them.
4 - I am not a fan of BT but to me BT is the one who spent the cash on FTTC, talktalk are just piggybacking of it so it seems fair BT do have a market advantage for that reason alone, if talktalk dont like paying a wholesaler they can of course deploy their own local loop.
5 - The last complaint of this nature led to speed differential pricing been dropped which to me was an aweful move (one price fits all adsl max services), this could potentially make BT retail ditch their 40/10 product.
6 - As a infinity customer my bill may go up for no reason other than talktalk's complaint.

[Qtx]

This is a sign that Talktalk is not doing too well lately. Complaints and litigation are becoming more and more part of companies strategic plans to improve revenue.

BT had to open up their network due to the unfair competition law. This time however I don't think this applies. As Chrys pointed out, BT have had to invest in the network so have to get their outlay back and the fact that other isp's are doing ok with the openreach scenario, I would expect Ofcom to rule against Talktalks complaint.

I don't understand Talktalks strategy here as I see this as hurting them more than what they will gain. Maybe they are that desperate or there is some real benefit for them that I don't see.

[Chrysalis]

Yeah, I think I remember another complaint fromt talktalk as well about how they dont get access to cabinets or something yet again sky are managing to enable cabinets not long after openreach enable them while talktalk can take several months.