Oftel orders BT: open lines to 'flat rate' net rivals

Telecommunications regulartor Oftel yesterday ordered BT to allow its competitors to use its network to sell unmetered net access in direct competition to its forthcoming Surftime service.

The ruling follows a complaint by MCI Worldcom; BT had rejected the American company's request for a wholesale unmetered internet access service and was only prepared to offer a metered service instead.

Oftel said its decision meant that other operators would be able to provide unmetered internet access to consumers in competition to Surftime - the BT unmetered internet access service which is due to be launched at the beginning of next month.

A spokesman for AOL UK, the British arm of the American service provider, said Oftel's ruling effectively ended BT's role as "gatekeeper to the internet in the UK" and opened the way for providing British consumers with the most affordable flat rate online access in the world.

He said that internet service providers would probably be able to offer unmetered access at less than half the cost of BT's Surftime service.

David Edmonds, the Oftel director general, said: "Although the UK has some of the cheapest internet access for residential consumers, Oftel wants to see more low cost access available, with a choice of tariff packages.

"We have been working to encourage a range of tariffs - including unmetered access for heavy users of the internet.

"We have welcomed BT's plans to launch Surftime, which will offer consumers both low cost pay as you go internet access and unmetered, or flat rate, tariffs.

"It is vital for the UK's vibrant internet market that other operators and internet service providers can compete fairly and offer similar products to their own customers."

The services covered by the ruling are based on narrow band access and do not involve broadband technology.

An Oftel survey published yesterday shows that Britain has some of the lowest telephone charges in Europe or the US.

The survey, which covers charges in five European countries and a selection of American states, shows the UK has the lowest prices for off-peak net use in the home. British residential customers also enjoy the cheapest peak-rate voice call prices.