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Rip-Off Britain?                                                                         February 2001

A surprise report from Oftel proclaims that the UK offers cheap access.

The outgoing ombudsman, Oftel, which is to be replaced by an overall communications regulator, has made the surprise claim that telecommunications in Britain are amongst the cheapest in the world.

A survey benchmarking costs and prices for access across Europe and the US (with special regard to Ohio and California) concluded that Britain has the second-cheapest off-peak, residential access, with only California offering access for less to home users. For businesses, the picture is less appealing, with the UK having the second-most expensive unmetered access (such as fixed line or ISDN) but still the cheapest metered access in Europe.

While some have been sceptical of the report, full details are available from Oftel. Certainly many of the companies which attempted to kickstart unmetered access in the UK have blamed BT for their woes over the past six months, including AltaVista, which prompted the rush for free access last year. One of the leaders of unmetered provision, Breathe, which claimed that BT's pricing structure made it unprofitable to continue, has recently been bought out by Great Universal Stores (GUS), the company that has been mopping up a considerable number of failing dotcoms after it acquired Jungle.com in October.

© Jason Whittaker 2000-04



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