Wholesale broadband access

Review of the wholesale broadband access markets 2006/07

Issued February 14, 2008

Executive summary

• BT strongly supports Ofcom’s proposal to define separate geographic markets for wholesale broadband access in the UK. We agree that the scope of Market 3 should be extended: this is entirely justified by the dramatic changes even in the relatively short period since the last consultation, which has seen LLU take-up soar by 160% to almost 4 million unbundled lines at January 2008.
• We believe that in formulating its proposals on retail market definitions, Ofcom could have investigated more thoroughly the evidence for geographic markets at the retail level. In our view, the results of such work would reinforce the clear case for geographic markets at the wholesale level.
• Ofcom propose that no provider has SMP in Market 3. In our view, this conclusion is incontrovertible. We estimate that BT’s share of this market may already be at or below the level at which single dominance concerns arise under competition law, and barriers to expansion are low, with all players able to benefit from economies of scale, scope and density.
• As explained in our response to the first consultation, we do not believe it would be legitimate for SMP remedies to be maintained in Market 3 for twelve months following the removal of SMP. If Ofcom proceeds with this proposal, any maintained obligations should apply only within strict limitations. BT would be willing to explore voluntary assurances to industry as a pragmatic, ‘light touch’ alternative to formal obligations.

You can download the full response as a PDF document

BT welcomes comments on the content of this document. Comments should be addressed to Mike Fox.