Ofcom investigates BT pricing
Ofcom are to investigate BT's wholesale pricing stategy for voice calls following complaints from Thus and Gamma Telecom.
Thus and Gamma have argued that BT’s price structure has squeezed their operating margins to such an extent that it risks putting the communications company out of business.
Should this be the case, BT could be found to have employed anti-competitive practices in contravention of the Competition Act 1998 and Article 82 of the European Treaty.
Ofcom will now inspect whether BT's price to resellers for wholesale end-to-end calls since 2005 is actually below cost.
Should Ofcom find this to be true, BT could be seen as having abused its dominant market position and the only party to have benefited from this price war will be the resellers.
BT maintain that it has acted properly and adds that it will fully co-operate with Ofcom’s investigation.
Published: 8th August, 2008
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