BT broadband strength sparks Parliament fight

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
A Parliamentary investigation into the UK's broadband market turned rowdy yesterday afternoon, as BT vigorously rejected claims that it should be broken up.

Members of the Trade and Industry select committee angered Ben Verwaayen, chief executive of BT, by claiming that BT had an unhealthy dominance over other telecoms companies in the UK, and that splitting the telco in half would benefit the British broadband market.

The MPs, led by committee chairman Martin O'Neill, told Verwaayen that they had heard complaints from other companies that BT acts in an anti-competitive manner to maintain its market share, leading them to suspect that BT's wholesale and retail operations should be separated into different companies.

Verwaayen responded that this would be bad for the entire market -- and also claimed that many of the complaints filed against BT were opportunistic.

"If you are a competitor of BT's, then the one golden rule is to file two complaints a week. We have become a complaints industry," said Verwaayen. He explained that the complexity of the UK telecoms market means that lowering the price of one of BT's products can have a knock-on effect on several others.

Verwaayen also denied that BT -- which has almost all of the wholesale market for ADSL but only 50 percent of the retail market -- was a dominant player. "We're strong, not dominant," he said, pointing out that NTL and Telewest have nearly as many customers as BT Wholesale.

The committee, though, had earlier heard NTL accuse BT of an anti-competitive pattern of behaviour over the past few years. The idea of splitting BT's network operations from its retail side is an old one, but O'Neill raised it as an option and demanded to know what the problem would be if BT had a smaller market share.

"It would be a less innovative market," claimed Verwaayen, who said that the creation of a dynamic market with exciting new services was a better measure of success than just getting BT's share of the broadband market down.

"You're not the only innovator around," O'Neill snapped back. "You've not got a God-given right to innovate."

"Your company, because of its size, strength and position in the market is an arrogant organisation that can unduly influence the market," O'Neill added, raising the temperature of the meeting even higher.

"BT is a company of 108,000 people, and I'm simply not going to accept the claim, on behalf of those people, that we're arrogant," insisted Verwaayen fiercely.

Ironically, the committee had already been told by several independent organisations that splitting BT would be a bad idea.

When asked whether he regretted not pushing for the separation of BT back in 1997, Oftel director general David Edmonds said he was extremely relieved that he had taken the decision not to.

"With all the benefits of hindsight, if we'd used the Enterprise Act six years ago to split BT it would have been catastrophic, as the separation would have taken place during the telecoms downturn," explained Edmonds.

"If we chose to do it now, the effects wouldn't be catastrophic, but I don't believe that a case has been proven," Edmonds added.

The select committee also heard that Britain is on the verge of signing up its three millionth broadband user -- a sign that the UK's high-speed Internet market is still enjoying very strong growth.

Talkback

I live in an ADSL exchange area and cant get broadband and BT are doing nothing. But this is still loads more than NTL are doing to try and get cable in my street, I stand more chance of BT enahcing technology than a 3rd party providing cable in my area.

Split them up and the revenue from the retail wont be supporting the infrastructure and they will have to expand

via Facebook 13 November, 2003 10:31
Reply

I too live in a broadband exchange area bu t I am too far from the exchange. Cable has not reached my area and probably never will.

If I lived in remote Wales or Scotland without a prospect of cable or broadband then the appropriate development authority would subsidise Satellite broadband, but I live in London and the LDA do not have this on their agenda.

The only other options are unaffordable (ISDN2e or a private line).

The net result is that as more and more govenment services and services in general are offered over the web and and in reality need a fast line not a 56k modem then I must conclude that I and my family am being gradually disenfranchised.

via Facebook 14 November, 2003 12:19
Reply

If you think thats annoying what til you here this! My neighbour has Broadband!!!! But BT says we are to far from the exchange now you gotta and it to them! I thought NTL were bad but looks like there cowboys as well!!!

via Facebook 28 May, 2004 14:07
Reply

IF YOU RING BT AND ASK WHY YOU CAN NOT GET BROADBAND THEIR ANSWER WILL BE THAT YOU LIVE OUTSIDE THE 6 MILE RADIUS OF THE EXCHANGE .....WELL THIS IS THE ANSWER I GOT ...... I SAID TO THE OPERATER "THIS IS STRANGE AS I LIVE WELL WITHIN THE 6 MILE AREA" .. "ARE WELL" came THE REPLY ....."YOU MAY LIVE WITHIN THE SIX MILE RADIUS BUT YOUR TELEPHONE LINE TRAVELS THE LONG ROUTE THAT MAKES IT FURTHER THAN THE 6 MILES .......VERY ODD I SAID ONLY MY NEIGHBOURS ON BOTH SIDES OF ME HAVE BROADBAND .................NOT UNUSUAL SHE SAID SOME PEOPLE ARE JUST UNLUCKY..

BT ARROGANCE WHO DO THEY THINK THEYARE ARE KIDDING !!!!!!

via Facebook 4 July, 2004 12:24
Reply

PROBS WITH BT!

Sympathies to all who have had negative response from BT regarding Broadband. May be my experiences (successfull) may help.

1. There is a number you can dial (17070?) which will tell you how far you are (via wire) from the exchange.

2. Sign up with bt broadband, They hate the regular bt lot and will arrange to have your libe checked for you by themselves

3. Phone up OFTEL. Crazy, but it works. When I did it, they phoned up BT and told them to retest my line, as BT said my house was 6.5 miles from the exchange yet their own self test said I was 5.6 miles!!

4. Sit back and wait for the telephone call from BT. Oh, yes. They do phone you (within 24 hours in my case) and said that they "were prepared to try it just this once, as an experiment"

5. Voila, broadband.

By the way, my line noise is 63.5 dB with a noise margin of 21dB. If your figures are better (lower line noise, higher margin) you will get broadband. BT don't like it when you demand to know your figures, but tell them you want them for inclusion with your complaint to OFTEL

via Facebook 6 July, 2004 15:22
Reply

What is BT's problem with rolling out Broadband? I now live in Germany and we are on our second generation broadband. The 756k, 1mb and 1,5mb rates have been upgraded to 1, 2 and 3mb respectively.

When I was in England, BT said I couldn't upgrade to broadband because I had ISDN. Here in Germany, ADSL is bundled in with their ISDN service. If you have an old analogue line, you need to upgrade it to ISDN at the same time you get DSL.

I have the 2mb line now (19.99€ flat-rate per month).

And all of this from the incumbent ex-monopoly Deutsche Telekom. And without having to call the equivalent of Ofcom. When I rented my flat, I went to my local electrical store and asked for a phone connection with ADSL. They looked up my post code and arranged the installation time.

The people here complain about what a bad deal DT provide, but after reading the horror stories still coming out of the UK, I'd rather have the minor hassles with DT than the bloody-mindedness of BT...

via Facebook 6 July, 2004 16:54
Reply

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

BrownieBoy

@Jack, > Works really well for thieves.... Nice attempt to deflect the argument by tossing in a point that's totally irrelevant, even it were...

14 hours ago by BrownieBoy on AMD Ultrathins to challenge Intel Ultrabooks
bootlegger

Make that 13 people now - I got refused today at Manchester airport. I thought I was up to date on this legislation - I knew of the EU ruling from...

17 hours ago by bootlegger on UK airport body scans will not be opt out
tinycg

Don't forget to check out apps like GoodReader or SlideShark either, they're indispensible for people on the go in presentation situations. Best...

19 hours ago by tinycg on Four top iPad apps for people on the move
TerryRK

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

24 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

1 day ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

2 days ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

2 days ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

2 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

2 days ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

2 days ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

2 days ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

2 days ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 days ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

2 days ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

3 days ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

3 days ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint