Assessing Potential Consumer Savings

BT Response, dated 30 June 2003 to the Oftel Consultation "Assessing Potential Consumer Savings" 8 April 2003

Download full response in PDF format.

Summary

BT agrees that well-informed customers are a vital part of any competitive market but believes that 'perfectly informed' customers can only exist in a  'perfectly competitive market'.

We believe that the communications market is already very competitive and we have demonstrated this in our response to the Retail Markets Reviews.

The fact that some consumers are paying something other than the cheapest price is not evidence of any failing in the market. Price is not the only differentiator or even, for some customers, the most important. Customer desire to have products and services from a single supplier, the technical quality of the product or service and the quality of the customer service surround, to name but a few factors, all play a part.

The analysis in the Consultation Document is, to some degree, undermined because it does not consider the extent to which people choose a supplier for non-price reasons.

We acknowledge and welcome that, throughout the document, Oftel has been open in highlighting many contentious issues and difficulties, admitting that its approach has to involve a number of relatively unproven assumptions.

BT believes that the initial study, though valuable, is too limited to lead to any firm recommendations.

BT is concerned that the consultation is premature, particularly since, in Paragraph 4.48, Oftel state that a full assessment of the effects of these issues will be dealt with in a more detailed survey to be conducted at an unspecified later date.

BT welcomes comments on this submission which should be sent to:
Anothony Foster
Email: anthony.2.foster@bt.com