BT to offer bundled deals as it loses market dominance

Ofcom has removed regulations stopping BT from offering bundled services, but for fixed lines only.

BT logo

BT may no longer be classed as the "significant market power" but it will now be allowed to offer bundled deals as its compensation.

A new ruling by the communications regulator Ofcom has said that the fixed lines part of the telecoms market is now highly competitive and no longer dominated by BT. As a result, it has removed regulation stopping BT from offering bundled services.

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However, Ofcom has said this is only for its fixed analogue lines and will have to look further into its dominance over the ISDN2 digital line market before it removes the ruling there.

A statement from Ofcom said: "BT will be able to more freely compete in the supply of bundles of services which include fixed telephony together with other telecommunications service such as mobile communications, broadband and television."

It added: "This should ensure that competition will continue to lead to enhancement in services and greater value for money for consumers."

More than 12 million homes and small businesses now use a provider other than BT with Virgin Media, Sky and TalkTalk now providing ample competition, although BT does still have 14 million fixed line customers.

Gavin Patterson, chief executive of BT Retail, said in a statement: "BT welcomes Ofcom's statement and the recognition that today's market is extremely competitive. It means that BT will be competing on a more level playing field than previously."

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The company has promised new deals will be offered to its customers within the near future.

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