ISPA CALLS ON OFTEL TO LEARN FROM LESSONS OF FRIACO
20 February 2001
ISPA is pleased that after 14 months of uncertainty, OFTEL has finally delivered the ST FRIACO determination to ensure that a wholesale unmetered product for Internet access is available to the industry.
Although ISPA welcomes the fact that many ISPs will now be able to buy unmetered products for their consumers from players other than BT, there is concern that it took OFTEL 14 months to reach a FRIACO determination. ISPA believes that the regulatory process designed to prevent abuse by BT of a dominant position and to promote competition in the market place has clearly failed in this case. This is demonstrated by the fact that, in the time it has taken OFTEL to resolve this issue, BT has managed to launch both Surftime and its ISP product Surfport before any wholesale products were in place to enable competitors to offer rival products for consumers and ISPs. The same intervening period saw the collapse of rival unmetered products offered in an environment where ISPs sought to meet consumer demand for unmetered products but were still obliged to pay BT by the minute. ISPA believes the reputation of the industry has been damaged by this process, and regrets that consumers have been disappointed and frustrated.
ISPA is also concerned to note that in the determination, OFTEL has extended to 2 years the interim period during which a cap on the number of ports available will apply. While ISPA recognises that the obligation on BT to provide ST FRIACO must be reasonable and technically feasible given the limited capacity at the main exchanges, ISPA hopes BT will meet all reasonable demand for ST FRIACO without limitation after this period, and before if technically possible.
If the lessons of the FRIACO process are not learnt, ISPA fears that similar experiences will be suffered under the regulatory processes for DSL. A crisis is brewing - many companies have walked away from unbundling and there are a number of complaints about the allocation process for the BT ADSL wholesale product, which is currently the only DSL product ISPs can buy. The European Commission is also making enquiries of UK companies as to their experience of DSL roll out and unbundling in our market.
We urgently call upon OFTEL to use the powers conferred upon it by legislation to demonstrate that they are able to provide effective regulation for the benefit of consumers and competition, and to bring an end to practices by BT which threaten the development of broadband Britain.
Ends.
Note for editors:
1. The UK Internet Services Providers Association (ISPA UK) was set up in
1995 as a trade association to represent UK companies in the Internet
sector. For a list of members or other information about ISPA, please
consult the website: http://www.ispa.org.uk
2. For additional details please contact ISPA at 020 7233 7234 or email: