British Telecom (BT), which could face an antitrust probe if it f...

response to an Office of Communications (Ofcom) consultation -- part of the 2nd phase of its strategic review of the country’s telecom sector -- the incumbent telco said a fair settlement with Ofcom “would balance ‘real equality of access’ with the opportunity for BT to develop its business, to invest and take commercial risks, and to succeed for its customers and shareholders if these actions are successful.” In Nov., Ofcom laid out 3 options for dealing with the “economic bottlenecks” in BT’s system -- across-the-board deregulation; referring BT to the Competition Commission for an antitrust investigation; or forcing BT to give competitors equivalence of products and to undertake major corporate behavioral changes (CD Nov 19/04 p5). Ofcom chose the 3rd. BT said it’s willing to make “significant organizational changes,” including creating a new access services division. It also agreed to: (1) Introduce equality of access in a phased and effective manner. (2) Ensure that wholesale line rental is “demonstrably fit for purpose.” (3) Keep local loop unbundling at the heart of its wholesale offerings. (4) Make sure the rest of its broadband products cut key wholesale broadband prices, beef up speeds and give all service providers a wide choice of offerings to suit their business models. (5) Agree on the “enduring economic bottlenecks” and work to ensure that “tight, appropriate” regulation is focused on them. (6) Detail the ground rules underpinning development of its 21st Century Network. But BT said it wouldn’t agree to any of this unless Ofcom commits to “rapid and significant deregulation” in the highly competitive consumer and business markets, and considers further deregulation. BT also wants Ofcom to create a stable investment environment, and to enable the incumbent to compete on a level playing field with other operators. In responses, competitors agreed with Ofcom’s call for equality of access but said they were skeptical BT will play fair. The main area of concern is the “current lack of developed thinking about implementation and delivery of a new ‘regulatory settlement,'” said the U.K. Competitive Telecom Assn. (UKCTA). BT could “make small movements” toward a settlement while “continuing to prevaricate and delay,” the group said. The industry can’t afford to “sit through months of talks while competition continues to be harmed thought the marked lack of equality of access on BT’s key bottleneck wholesale products,” UKCTA said. Cable & Wireless (C&W) also questioned BT’s intentions, saying unless Ofcom continues its “robust direction” over the incumbent now and in the future, “BT will continue to be able to inhibit choice and prolong the unsustainable structure of the fixed telecom industry from which only they benefit.” C&W detailed 9 provisions it said should be part of any settlement agreement. If the settlement doesn’t include every point, it said, Ofcom should send the matter to the Competition Commission.