Convinced the Office of Communications (Ofcom) intends to announc...

what it might do at the European Union level to counter BT’s move, a spokesman told us. UKIF members worry the price increase for some IPStream office products could bankrupt them. IPStream provides end- to-end broadband service from customers’ connections to phone exchanges and ISP servers. On Aug. 20, UKIF members, small to mid-sized ISPs, met with Ofcom and submitted a response to the regulator’s current consultation on the “margin squeeze” between IPStream and BT’s DataStream, products that allow large ISPs to purchase local broadband access from BT but give their own customers connectivity on their or someone else’s network. UKIF criticized both the substance and process of the consultation, saying Ofcom: (1) Didn’t adequately consult with IPStream customers most likely to be hurt by BT’s price increase. (2) Applied the wrong regulatory test. Instead of using the “retail minus” or “margin squeeze” test, UKIF said, Ofcom should have taken a “cost-plus approach.” (3) Failed to recognize IPStream and DataStream are competing products. Although the submission was filed late, UKIF said, it has been assured Ofcom will consider it. Even so, the group said last Fri.’s meeting “left a rather bad taste in the mouth” because the “overriding feeling” was that the regulator had already made up its mind. A BT spokesman said the telco will respond to any concerns Ofcom raises. Ofcom’s decision is due for publication this month and UKIF’s comments will be taken into account, a spokesman said.