Oftel rejects Freeserve broadband competition claims
21 November 2003
UK telecoms regulator Oftel has, once again, rejected claims for Freeserve accusing BT of predatory pricing.
Freeserve made its original complaint about BTOpenworld's pricing policies to Oftel in March 2002 and subsequently appealed against Oftel's decision to the then Competition Commission Appeal Tribunals, in 2002.
The Tribunal found in favour of Oftel on three of the four elements of Freeserve's appeal, but on the fourth said that Oftel had given insufficient explanation of why it had concluded that there was no evidence of a margin squeeze.
Following re-investigation Oftel has reached the same conclusion as before.
'As well as re-examining all the evidence, Oftel has set out a framework applicable to a margin squeeze investigation which can be used to inform the analysis of margin squeezes in other cases,' commented Peter Waller, Deputy Director General of Telecommunications.
'This underlines the importance we attach to fair competition in the broadband market, backed by regulatory decisions underpinned by the most thorough analysis of market conditions at the time,' he added.
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