Ofcom’s consultations may cause price war

March 20, 2009

Currently the telecom regulator is launching a consultation process that should be fairly straight forward, but these are cut throat days and anything could happen should a provider sense the opportunity to capitalise on an oversight.

The consultation is a three pronged process covering BT and the fixed line network.

It covers the Network Charge Controls (NCCs), fixed line narrowband retail and the wholesale market.

There are fears that BT may see this as the beginning of deregulation and may try to get the jump on other providers by coming up with offers such as free broadband and other services, before the competition has the chance to.

This could then spark a price war, which in the current economic conditions could be fatal for some broadband and phone service providers.


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