Oftel says 'Oftel has done a great job'... must be true

Telecoms regulator offers some searing self-examination...

The widely criticised UK telecoms regulator Oftel has warmly congratulated itself on its record in the last annual report before a timetable for its demolition is published. In a statement, Oftel said: "Oftel's requirement on BT to offer wholesale, unmetered internet access to other operators made a major contribution to the development of unmetered internet access in the UK." The introduction of fixed-cost internet products using Friaco during 2000 meant the narrowband internet situation in the UK did improve over the year. Voice telephony prices also fell over the year, as increased competition began to take effect - to the extent that one survey rated the UK as cheaper than California for a range of telecommunications services. However, in the broadband world, the situation is not nearly so rosy. Small broadband providers have been leaving the business or going bust at a rapid rate, and by the end of 2000 the UK was languishing at or near the bottom of every broadband access league table published. The report refers to the DSL debacle with the following words: "Oftel worked to ensure that service providers can compete effectively with BT's own service provider business, BT Openworld. There are currently 100 service providers using BT's wholesale products, which are available to them on the same terms and conditions." Early this year, Freeserve and AOL were up in arms, claiming BT was only connecting 100 customers to each of its services per week, and 2,000 customers to BTOpenworld. As for letting rival companies install their own DSL equipment, the report notes: "Early in 2001 it became clear that a number of companies, partly as a result of the adverse financial climate, were no longer involved in the unbundling process." Market conditions were certainly a factor, but the report doesn't remark on whether BT's obstructiveness and Oftel's dithering also played a major roll in delaying the roll out of ADSL lines in the UK.