BT yesterday came under attack for the way it sells fast internet or broadband services and the prices it charges other telecoms companies to connect customers to its network of local telephone exchanges.
Freeserve, the internet service provider owned by France Télécom, yesterday won a legal battle which opens up the possibility of BT being sued over broadband. The competition commission appeal tribunal (CCAT), which regulates the regulators, yesterday ruled that it could examine why Oftel threw out a series of complaints made by Freeserve about BT nine months ago.
The complaints date back to February when BT's new chief executive, Ben Verwaayen, announced a 50% cut in the price of broadband access.
Freeserve complained to Oftel that BT's Openworld ISP must have received prior notice of the cut and that BT's broadband marketing campaign - which accompanied the price cut - was an example of cross-marketing.
In March Oftel threw out the complaints and Freeserve appealed to the CCAT which yesterday ruled in its favour.
The CCAT can demand that Oftel investigate BT's prices or it can investigate BT itself. If it finds that BT acted anti-competitively, Freeserve is likely to seek compensation.
"I am frankly over the moon that the tribunal has kicked out Oftel's arguments and I cannot wait to get this matter dealt with by a competent competition authority because Freeserve is fed up watching Oftel do absolutely naff all in this market," said Freeserve's general counsel, David Melville.
Separately, telecoms company Fibernet will today lodge a complaint with Oftel over what it says are the high prices that BT charges to connect other telecoms networks to its local exchanges.
Duncan O'Neill, Fibernet's head of regulatory affairs, said BT's pricing of this connection - known as "backhaul" was holding up broadband competition.
BT, which yesterday entered the home PC market, has offered to cut prices by 3%. Fibernet wants backhaul pricing cut in half. Fibernet wants Oftel to make a decision before Christmas.
"BT are flying in the face of Oftel and largely ignoring the regulator," said Mr O'Neill. "We want Oftel to get to grips with this - we have been hanging around for too long, it really is time that Oftel took a more decisive approach."
