New web access hope

Oftel: Decision should ensure greater choice and lower prices

Competition in the UK's unmetered internet access market looks set to grow after Oftel, the telecoms regulator, ordered BT to connect users to operators' networks for a flat fee.

The new directive says that from 26 February BT must offer connections between its local exchanges and the networks of internet service providers (ISPs) for a single flat-rate annual fee.

Previously, BT was only obliged to provide flat-rate connections between the local exchanges and the internet users themselves.

Oftel described the deal as a major initiative that would lead to greater choice for consumers.

Very long time

Director general David Edmonds said: "Today's decision should ensure that UK consumers continue to have some of the widest choice and lowest prices for internet access in Europe.

"It should encourage more UK consumers to take advantage of the internet without the worry of running up high telephone bills."

Matt Peacock, a spokesman for AOL - one of the UK's biggest ISPs - said: "We applaud Oftel for finally seeing this process through and delivering a victory for UK consumers.

"However, to put this in context, we first put this model to BT a year and a a half ago and that is a very long time for consumers to wait for something which has been widely available in the United States for years."

BT said implementation of the directive would be "challenging" but it would work with the industry to drive the project forward.

February 2003 deadline

Oftel said BT would have to meet "all reasonable demand" from February 2003.

Until then, BT and other operators will be required to co-operate to make the best use of existing capacity, Mr Edmonds said.

"This will allow consumers to start benefiting from the service and give BT time to make the necessary changes to its network so it can offer the product on an unlimited basis as soon as possible."

The service will be known as ST Friaco (single tandem flat rate internet access call origination).

Oftel also said it would work with the industry to establish a new interconnection regime under which internet traffic would be carried on more efficient, dedicated networks rather than on existing voice networks.